Stop Limit Order

These combine the features of a stop order and a limit order.  Once the “stop price” has been reached the stop limit order becomes a limit order to buy or sell at a specific price.  This is another way investors can control the price at which the order is filled.  But, as with all limit orders; your order may never be filled if the stock price never reaches the limit order.  These are also used primarily on stocks that sell on exchanges, not OTC.  For example if HFC is trading at $50, you might put in a stop limit order with a stop price at $45 and a limit price at $42.  If the price falls to $45, the stop price is activated, if the stock can be sold above $42, the trade will be executed.  If the stock falls below $42, let’s say to $40, the order will not be filled.  It can help protect your investment, but your transaction is not guaranteed if the conditions are not met.