A stop-limit order pairs a stop trigger with a limit price. When the price hits your stop, it places a limit order — so you control the worst price you will accept, at the risk that the order may never fill.
A stop-limit order combines two instructions on a stock: a stop price that activates the order, and a limit price that caps how far you will let the fill go. Nothing happens until the price reaches your stop; then a limit order springs to life and only executes at your limit price or better.
A plain stop-loss turns into a market order when triggered — it fills fast at whatever price is available, even a bad one. A stop-limit turns into a limit order instead: it protects your price, but if the market gaps straight past your limit, it may not fill at all.
If the price blows through both your stop and your limit in one move, the order sits unfilled and you stay in the position. That “no fill” risk is the price of demanding a guaranteed price — the same control-vs-execution trade-off behind every limit order.
Practice order timing: place buys and sells at the right moment with play money in the day trading simulator.
Not advice: educational content only. For authoritative basics see the SEC at investor.gov.
Related: what is a stop-loss order, what is a limit order, and what is a market order.
A stop-limit order has two prices: a stop price that activates the order and a limit price that controls the worst price you will accept. When the stop is hit, a limit order is placed that only fills at your limit or better.
A plain stop-loss becomes a market order once triggered, filling at whatever price is available. A stop-limit becomes a limit order, so it protects your price but risks not filling at all if the market gaps past your limit.
Use one when you want a trigger but refuse to be filled at a terrible price — for example to exit a volatile stock without selling into a sudden crash, accepting that the order might not execute.
It can fail to fill. If the price blows straight through both the stop and the limit, your order sits unexecuted and you stay in the position — the trade-off for demanding a price guarantee.