Definition of Stop Limit Order

Stop limit order is an order that becomes a limit order to buy or sell the stock when the stock trades at or through the stop price.

Applying "Stop Limit Order" to Securities Exams:

An investor may enter a stop limit order to enter or to exit a trade if a security trades at or through the stop price. A stop limit order is not a live order until the security trades at or through the stop price and the order is elected. Once the order is elected it become a limit order to buy or sell the security.

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