What is a Stop-Limit order?

A stop-limit order is an order that becomes active at your pre-determined stop price and will be executed at your pre-determined limit price or better.

A stop-limit order does not guarantee execution if the market price does not reach the stop price within a certain period or, once activated, if the price moves beyond the limit.

For example, if the current market price of a share is EUR 100:

Buy: If you place a buy stop-limit order with a stop price of EUR 110 and a limit price of EUR 120, and later the market price rises to EUR 110, the buy limit order is activated. As long as the order can be filled below EUR 120, which is the limit price, the transaction will be executed.

Sell: If you place a sell stop-limit order with a stop price of EUR 90 and a limit price of EUR 80, and later the market price falls to EUR 90, the sell limit order is activated. As long as the order can be filled above EUR 80, which is the limit price, the transaction will be executed.