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Stop-limit order
A stop-limit order combines two prices: a stop price that activates the order and a limit price that sets the worst price you will accept. When the stop is reached it becomes a limit order rather than a market order, so it may not fill at all.
What it means for you. A stop-limit protects you from a terrible fill but not from a falling price. If the market drops straight through your limit, the order sits unfilled and you still hold the asset as it falls. Choosing the gap between the stop and the limit is the real decision.
Sources: SEC Investor Bulletin: Stop, Stop-Limit, and Trailing Stop Orders, FINRA: Stop Orders: Factors to Consider During Volatile Markets, CFTC Glossary · checked 4 October 2026
Limit order
A limit order is an instruction to buy or sell only at a price you set, or better. A buy limit fills only at that price or lower; a sell limit only at that price or higher.
What it means for you. A limit order caps the price you pay or accept, but the SEC notes it is not guaranteed to fill: if the market never reaches your price, nothing trades. Check whether an open order expires or stays live, since a forgotten one can fill later.
Source: SEC Investor Bulletin: Trading Basics · checked 4 October 2026