Stop-Limit Order

A stop-limit has two prices: a stop price (the trigger) and a limit price (the worst price you'll accept). When the market hits the stop price, the order activates as a LIMIT order at the limit price — not a market order. This means you'll only get filled if the limit price is available; if the market is moving too fast, the order won't fill at all. Stop-limits are used to protect against slippage on breakouts. A regular stop-market order can fill 20+ pips worse than expected during news. A stop-limit caps that slippage — you either get a good fill or you don't get filled at all. The trade-off is missing fast moves. If price gaps through your trigger and through your limit price without trading at the limit, you don't enter — you watch the move from the sidelines. Pros use stop-limits during news; market stops during normal hours.