Glossary

Stop-limit order

Order types

A stop-limit order uses a trigger to place a limit order. It will not fill beyond the limit price.

Explanation

MetaTrader 5's Buy Stop Limit places a Buy Limit once the Ask reaches the stop, and the limit price is set below that stop. A Sell Stop Limit places a Sell Limit once the Bid reaches the stop, and the limit price is set above that stop. CME's stop-limit is activated when the trigger price trades, and any remainder then rests as a limit. Because the second stage is a limit, the order can remain unfilled if the market moves through the limit. That is the difference from a stop that becomes a market order.

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Related terms

Sources and last check

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