Glossary
What is a stop-limit order?
Also called: stop limit, stop-limit
Updated Ninja Terminal team
Definition
A stop-limit order is a conditional order with two prices: a trigger price and a limit price. When the market reaches the trigger, the exchange places a limit order at your limit price. This caps the worst price you accept, but if price moves through the limit without filling, the order stays open and the position stays unprotected.
A stop-market order guarantees execution after the trigger but not the price. A stop-limit order does the opposite. It guarantees the price limit but not execution.
How does it work?
Example: you are long BTC from 60,000. You set a trigger at 58,500 and a limit at 58,400.
- Price falls to 58,500. The trigger fires.
- A limit sell at 58,400 is placed on the order book.
- If price trades above 58,400, the order fills. If price gaps below 58,400, the order does not fill, and the loss can grow.
Traders often set the limit slightly beyond the trigger to improve the chance of a fill. The wider the gap, the more slippage you accept.
When is it a poor fit?
As a protective stop-loss in a fast market, because an unfilled stop does not close the position. As a take-profit or an entry, it is often a good fit, because the price limit is useful.
How do venues describe it?
Hyperliquid lists “Stop Limit” as a limit order that activates when price reaches the trigger. Binance USD-M lists STOP and TAKE_PROFIT as limit-based conditional types. Other venues use different names, so check the fields on your venue.
Ninja Terminal offers Stop Limit as an order type next to Market, Limit, and Stop.
Frequently asked questions
What is the difference between stop and stop-limit?
A stop (stop-market) order sends a market order at the trigger. A stop-limit sends a limit order, which can leave the order unfilled.
Which price should the limit be?
It depends on how much slippage you accept. A limit set farther from the trigger fills more easily but at a worse price.