Stop Limit Order
A combination of a stop order and limit order–that is, the order becomes a limit order after the specified stop price has been reached. Stop Order: An order that becomes a market order when a round lot in an NYSE or AMEX listed security trades at or through a specified price (stop price) or when the national best bid in a NASDAQ listed security reaches the specified price. A stop order is usually used to protect paper profits or limit the extent of possible losses.
« Back to Glossary Index