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Stop-limit order

An order that, once the trigger price is reached, places a limit order in the book at a price fixed in advance.

How to read the number

Unlike a plain stop order it caps the execution price: the system will not accept whatever happens to be available.

When the metric lies

If the market jumps past the stated limit, the resting limit order goes unfilled and the position survives against the author's intention.

Also known as: stop limit

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