Stop-Limit Order

A stop-limit order combines both mechanisms: once the price reaches the stop trigger, it places a limit order (rather than a market order) at a specified price, giving the trader control over the worst price they'll accept. This protects against slippage in fast markets, but it introduces the risk that the order never fills at all if the price gaps straight through the limit level. Stop-limit orders suit traders who value price certainty over guaranteed execution, which is the opposite trade-off to a standard stop order.