Order Type

Stop-Limit Order — Definition & Example

A stop order that converts to a limit order (instead of a market order) when triggered.

Stop-limit orders combine the trigger of a stop with the price-control of a limit. When the stop price is hit, the order becomes a limit order at the specified limit price. This protects against slippage in fast markets but introduces the risk that price keeps moving past the limit and the order never fills — leaving you with unprotected losses. Use carefully in volatile instruments.

Example

Stop ₹490, limit ₹489. If price hits ₹490, a limit sell at ₹489 is placed. If price drops straight to ₹485 with no fills at ₹489, the stop-limit doesn't execute and you stay long.

Related

Stop OrderLimit OrderSlippageIgnoring Stop-Loss

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