Investor Glossary-stop-limit orderInvestor Glossary-stop-limit orderInvestor Glossary-stop-limit orderInvestor Glossary-stop-limit orderInsightful stock market charts - Click here
investor
Categories    # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Stop-limit Order

The HTML to link to this page
 

A stop-limit order automatically liquidates a stock at a specific price. A stop-limit order is designed to either protect a profit or to minimize a loss. Unlike a simple stop order, which liquidates a position at the best price possible, a stop-limit order liquidates a position at a specific price (or better). This can pose a risk to the investor in a fast-moving market, where it is possible for a stop-limit order to be passed over with no one willing to sell at the specified price. A trailing stop-limit order can be an excellent risk management tool. A trailing stop-limit order placed, say, 50 cents below a stock's highest trade limits an investor's loss to 50 cents per share, but if a stock's price rises, the trailing stop-limit order rises along with the stock, locking in a profit.



Rate this stop-limit order definition...

Learn about investing with the Investor Glossary Term of the Day


Click here for insightful stock market charts. Where is the market headed? The answer may surprise you. Find out
with the exclusive & Barron's recommended charts of Chart of the Day.


Popular Terms: liquidity ratio, annual return, wholly-owned subsidiary, debt service coverage, margin rate, 1031 exchange, covered put, inflation, EBITDA, irrevocable trust, deferred tax, open position, 1035 exchange, ex-dividend date, stock split, labor relations, cancelled check, required rate of return, stock market close, limit order, real GDP, APR, in escrow, quality assurance, FTSE, LIBOR, per diem, FICO score, current ratio, Zero Cost Collar, average price per share, class C shares, deferred revenue, VIX, retained earnings, implied volatility, ex-dividend, dividends payable, option premium, balance sheet, command economy, minority interest, Key Rate Duration, diluted share, phantom income, risk management, 144a, reverse mortgage, 401a


Accounting | Banking | Bonds | Brokers | Economy | Futures | Mutual Funds | Options | Real Estate | Retirement | Stocks | Taxes | Technical Analysis
Investor Glossary | Term of the Day | Suggest a Term | Chart of the Day | Dogs of the Dow
©2004-2016 Investor Glossary - All rights reserved - Terms of Use