What is the difference between a stop price and a limit order?

In a regular stop order, if the price triggers the stop, a market order will be entered. If the order is a stop-limit, then a limit order will be placed conditional on the stop price being triggered. Thus, a stop-limit order will require both a stop price and a limit price, which may or may not be the same.

What is a stop-limit order?

A stop-limit order combines the features of both a limit and a stop order. A limit order is an order to buy or sell a certain security for a specific price. 1 One thing to keep in mind is that you cannot set a plain limit order to buy a stock above the market price because a better price is already available.

What is a sell stop limit?

Sell Stop Limit A sell stop limit is a conditional order to a broker to sell the stock when its price falls up to a specific price – i.e., stop price. A sell stop price has two price components – i.e., a stop price and a limit price.

Can I set a limit order to sell below the current price?

Just remember that you cannot set a limit order to sell below the current market price because there are better prices available. In a regular stop order, if the price triggers the stop, a market order will be entered. If the order is a stop-limit, then a limit order will be placed conditional on the stop price being triggered.