Stop-Limit Order
Also called: SL order
A stop order that converts into a limit order instead of a market order — caps your worst-case fill price.
Definition
A stop-limit combines the trigger of a stop with the price guarantee of a limit. When price touches the stop, the broker submits a limit order at the specified limit price (which can differ from the stop).
Useful when you want to enter on a breakout but refuse to pay above a certain price. The downside: if the market gaps through both your stop and limit, the order never fills.
Example
You set a buy stop at 1.0900 with a limit at 1.0905. Price hits 1.0900 → a buy limit is submitted with max price 1.0905. If price runs to 1.0910 before filling, the order remains unfilled.
Why it matters
Setting the limit too close to the stop can mean missing fast moves. Setting it too far defeats the price-control purpose.