Technical Definition
Stop-Limit Order
A stop-limit order becomes a limit order after a specified stop price is reached.
By Crypto University Editorial
Stop LossLimit orderLimit Price
✦ Key Insight
It gives price control after a trigger but does not guarantee an exit in a fast market.
✕ Common Misconceptions
A fast move can pass the limit and leave the order unfilled.
Detailed Explanation
It combines a trigger with a limit price, so execution is restricted after the stop activates.
In Practice
“A trader sets a sell stop at $90 and a limit at $89.50.”
Dig Deeper
Market order
A market order instructs a trading venue to buy or sell immediately using the best available prices.
Limit order
A limit order instructs a trading venue to buy or sell only at a specified price or better.
Limit Price
A limit price is the maximum price a buyer will pay or the minimum price a seller will accept in a limit order.
Volatility
Volatility measures the magnitude and frequency of price changes in an asset or market over time.
Stop Loss
A stop-loss order or instruction is designed to close or reduce a position when price reaches a specified adverse level.