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stop limit order

 - 5 dictionary results

stop-lim⋅it or⋅der

  [stop-lim-it] .
Use stop limit order in a Sentence
–noun
stop order.

stop order

 
–noun
an order from a customer to a broker to sell a security if the market price drops below a designated level.
Also called stop-limit order, stop-loss order.

Origin:
1870–75
Dictionary.com Unabridged
Based on the Random House Dictionary, © Random House, Inc. 2009.
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Financial Dictionary

stop-limit order

A specialized order in which a limit order and a stop order are combined. Once the specified stop price has been reached or exceeded, the stop-limit order becomes a limit order. A stop-limit order differs from a stop order, which becomes a market order when the stop price has been reached or exceeded. A stop-limit order to buy must have a stop-limit price above the market price; conversely, a stop-limit order to sell must have a stop-limit price below the security's market price. In response to a stop-limit order specifying sell 100 GY 15 stop limit, once the stock sells at or below $15, the order becomes a limit order to sell 100 shares at a price of $15. A variation of the stop-limit order specifies a limit price lower than the stop price.


stop order

  1. An order to buy or to sell a security when the security's price reaches or passes a specified level. At that time the stop order becomes a market order and the executing broker, usually the specialist, obtains the best possible price. A stop order to buy must be at a price above the current market price and a stop order to sell must have a specified price below the current market price. See also buy stop order, electing sale, protective stop, sell stop order, stop-limit order, stop price, trailing stop.

  2. An order from the SEC suspending a registration statement when an omission or a misstatement has been found.


Wall Street Words: An A to Z Guide to Investment Terms by David L. Scott.
Copyright © 2003. Published by Houghton Mifflin.
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Legal Dictionary

Main Entry: stop order
see ORDER 4b
Merriam-Webster's Dictionary of Law, © 1996 Merriam-Webster, Inc.
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