Stop-Limit Order
A stop order that, once triggered, enters the book as a limit order at a stated price rather than as a market order.
How it is identified
Test: the order carries both a trigger price and a limit price; the limit governs the worst acceptable fill
Unit
qualitative
In depth
The stop-limit trades one risk for another: it protects against a terrible fill, but it can fail to execute at all if the price races through the limit. In a sharp decline that is the worst outcome available, because the position stays open while the loss keeps growing. Traders who set the limit equal to the trigger effectively guarantee non-execution in any fast market, since the price rarely pauses exactly there. The choice between stop-market and stop-limit is a choice between certain exit at an unknown price and uncertain exit at a known one.
Worked example
Trigger ₹480, limit ₹478. The stock gaps to ₹440: the stop triggers but no buyer is available at ₹478 or better, so nothing executes and the position rides all the way down. A plain stop-market would have exited near ₹440.
Illustrative figures, chosen so the arithmetic is easy to follow. Not a live price and not a valuation of any company.
Educational reference only
This entry explains what “Stop-Limit Order” means. It is not investment advice and not a recommendation to buy or sell any security. Any numbers above are illustrative, not live prices, and nothing here predicts price direction or rates a stock. Consider your own circumstances and consult a SEBI-registered investment adviser before acting.