What Is An All Or Stop Limit Order?

What is an all or stop limit order? A stop limit order is an order to buy or sell a certain quantity of a certain security at a specified price or better, but only after a specified price has been reached....

A stop limit order is an order to buy or sell a certain quantity of a certain security at a specified price or better, but only after a specified price has been reached. A stop-limit order is essentially a combination of a stop order and a limit order.


The main benefit of a stop limit order is that the trader has total control over where the order should be filled. As with all limit orders, the downside is that the trade may never be executed if the security never reaches the specified price.




A stop order becomes executable once a set price has been reached and then filled at the current market price. A limit order is an order that is at a certain price or better. By combining these two types of orders, the investor has much better control and precision in executing the trade.

Because a stop limit order is filled at the market price once the stop price has been achieved, it's possible that in a very fast-moving market, you could end up with a bad deal. And remember that not all brokers allow investors to use stop limit orders with all securities, especially with over the counter (OTC) commodities.

Here's an example to illustrate a stop limit order:

An investor wants to buy ABC stock. ABC stock is currently selling at $30 per share. The investor puts in an order with a stop at $35 and a limit of $36. If ABC stock moves above the $35 price, the order is activated and turns into a limit order. As long as the order can be filled for under $36 (the limit price), the trade will be filled. If the stock goes above $36, the order will not be filled.

The stop limit order can be used both in buying and selling securities and commodities. Some trading systems require you to set your stop and your limit at the same price. Thus your order would look something like this: "I want out at 64 and not less than 64."

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