Stop-Limit Order
An order that becomes a limit order (instead of a market order) once the stock reaches a specified trigger price — combining stop and limit functionality.
Explained Simply
A stop-limit order has two prices: the stop price (trigger) and the limit price (the worst price you'll accept). For a sell stop-limit: if the stock hits $50 (stop), a limit sell at $49.50 is placed. This protects against slippage — you won't sell below $49.50. The risk: if the stock gaps below $49.50, your order won't fill at all, and you're stuck holding a falling stock. Stop-limits are best in liquid markets where gaps are small.
How Tradewink Uses Stop-Limit Order
Stop-limit orders are used selectively by the TradeExecutor for liquid, large-cap stocks where gap risk is low. For volatile or illiquid stocks, regular stop orders are preferred to ensure execution. The AI calculates the limit offset (difference between stop and limit price) based on the stock's typical bid-ask spread and historical gap behavior.
Related Terms
See Stop-Limit Order in action
Tradewink uses stop-limit order as part of its AI trading signal pipeline. Start getting signals that use this concept to find real opportunities.