Stop-limit order
A stop-limit order is an order with two prices: when the market touches the stop price, a limit order is placed at your limit price. It avoids slippage but may not fill.
How it works
You set two prices. The stop price is the trigger: until the market reaches it, nothing sits in the order book. The limit price is the worst price you accept once the trigger fires.
The upside is price control: you will not sell below your limit even in a fast move. The downside is that if price jumps past your limit in one go, the order sits unfilled in the book and your position stays open.
Stop-limits are used to enter on breakouts (buy once price breaks above a level) and to exit with a price cap. For an emergency stop-loss in a volatile market many traders prefer a stop-market order, because getting out matters more than getting a perfect price.
BTC is at $60,000 and you hold a position. You place a stop-limit sell: stop $58,000, limit $57,800. If price drifts down to $58,000, the order goes into the book and likely fills between $58,000 and $57,800. If price crashes to $57,000 in a second, your $57,800 limit is above the market and the sale never happens.
Breakout entry: ETH trades at $3,000 with resistance at $3,100. You place a stop-limit buy: stop $3,105, limit $3,120. You only buy after the breakout and never above $3,120.
A common mistake is setting the limit price right on top of the stop price (stop $58,000, limit $58,000) and treating it as a safe stop-loss. In a sharp move that order simply does not fill. Leave a gap between stop and limit that fits the asset's volatility, and consider a stop-market order when protection from big losses is the priority.
Questions and answers
What is a stop-limit order in simple terms?
It is a pending order: when price reaches your trigger, the exchange places a limit order at the price you chose. Until then, nothing is in the order book.
What is the difference between stop-limit and stop-market?
A stop-market fills right away at the market price after the trigger, slippage included. A stop-limit never fills worse than your limit, but it may not fill at all.
Why did my stop-limit order not execute?
Most likely price passed both your stop and your limit too fast, leaving your limit order stranded above or below the market. Check your open orders: the position is still open.
Related terms
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Updated: 2026-10-19