Stop-limit order
Also called: stop limit · stop-limit
Definition
A stop-limit order combines a stop price and a limit price: when the market reaches the stop price, a limit order is placed at your limit price, so it only fills at that price or better.
This entry is shown in English.
How Stop-limit order works
You set two prices. The stop price is the trigger. The limit price is the worst price you will accept once triggered. For a sell stop-limit protecting a long position, you might set a stop at 95 and a limit at 94. When the price trades at 95, a sell limit at 94 is placed in the book.
The advantage over a stop-market order is price control: you will not sell far below your chosen level during a sudden crash. The risk is that the order may not fill at all. If the price gaps from 95 straight to 90, your limit at 94 sits unfilled and your position stays open while losses grow.
Leave enough room between the stop and limit prices for the coin's normal volatility. Liquid pairs can use a small gap; volatile small coins need more. Exchanges sometimes call these conditional or trigger orders, and their settings can differ, so check how your exchange labels them.
Example
Suppose you hold 100 coins bought at 12 USDT and set a stop-limit with a stop at 10.00 and a limit at 9.90. The price falls to 10.00 and a sell limit for 100 coins at 9.90 is placed. If buyers exist down to 9.90, you sell for about 990 USDT, a loss of roughly 210 USDT. But if bad news drops the price straight to 9.00, your order does not fill, and the position is worth only 900 USDT, a 300 USDT loss, until you act.
Common mistakes
- Setting the limit price equal to the stop price, so the order often fails to fill in a fast move.
- Using a stop-limit to protect a highly leveraged position where a missed fill can lead to liquidation.
- Assuming a triggered stop-limit means the position is closed without checking the open orders.
Learn and practise
FAQ
What is the difference between a stop-loss and a stop-limit?
A stop-market order sends a market order when triggered and almost always fills. A stop-limit sends a limit order and only fills at your limit price or better.
Why did my stop-limit order not execute?
The price likely moved through your limit price too quickly, leaving your limit order unfilled in the book.
How far should the limit be from the stop?
It depends on the coin's volatility and liquidity. A wider gap raises the chance of a fill but allows a worse price.