stop-limit order
- noun
- Specialized
:
orden de stop-limit
- A stop-limit order allows investors to specify both a stop price and a limit price for their trade.
Examples
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Traders often use a stop-limit order to avoid selling shares below a certain price during volatile markets.
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She placed a stop-limit order to manage her risk if the stock price suddenly dropped.
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I placed a stop-limit order for my shares.
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A stop-limit order can help manage risk effectively.
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A stop-limit order enables traders to automatically sell their shares if the price falls to a certain level, ensuring they do not incur large losses.
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By using a stop-limit order, investors can set their desired selling price after a stock reaches a specific point, maximizing their potential profit.
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She implemented a stop-limit order to ensure that her investment would be sold only if the stock reached her predetermined limit.
How Controlled
Surface Forms
Morphology
stop-limit + order
The components 'stop', 'limit' and 'order' give a general hint that this is a type of trading order involving a stopping point and a price limit, but the precise activation/execution mechanism is technical and not predictable from those words alone. A B1 learner who knows the constituent words would get a vague idea but would not be able to derive the full meaning without domain-specific knowledge, so the expression is only partially transparent.
Etymology
The term stop-limit order comes from combining a stop and a limit: first the order 'turns on' when a stock reaches the stop price, and then it becomes a limit order that will only 'buy' or 'sell' at your set price or better. That's why it means a two-step order to control when and at what price a trade happens.