A stop-limit order combines features of a stop order (the ability to trigger your order at a certain price) with a standard limit order. Selfwealth offers stop-limit sell orders, also informally known as stop-loss orders, as part of our US trading platform.
When a stop-limit sell order is submitted to market, it remains inactive until the market price of the security drops below a specified trigger price. Once the trigger price is met, the order becomes a standard limit order and fills at the limit price or better.
Stop-limit orders can be placed during the regular trading session with day-only expiry. They are not available during the pre-market session and cannot be extended beyond a day.
How do I place a stop-limit order?
Website
- Log in to the Selfwealth website.
- Search for the US stock you want to trade using the search bar in the top right corner, or open it from your Portfolio, Watchlist, or the Discover page.
- On the stock page, use the order panel on the right-hand side and select Sell.
- Click the order type dropdown (top right of the panel) and select Stop (Limit).
- Ensure Trading session is set to Regular hours.
- Enter your trigger price. The trigger price must be below the current market price of the security.
- Enter your limit price per share. This is the price you want the stock to sell at once the trigger is activated.
- Enter the quantity of shares you want to sell.
- Review your estimated order value, then click Sell to submit your order.
Mobile App
- From the security you wish to trade tap Buy or Sell.
- Choose Stop (Limit) as your order type.
- If your last order type is selected by default, tap the Order Type dropdown (top right) to change it to Stop (Limit).
- Enter the required details for your selected order type, such as:
- Trigger Price
- Limit Price
- Quantity
- Expiry Date
- Slide Slide to Continue.
- Review your order, then tap Buy or Sell to confirm and place it.
What is the difference between the trigger price and the limit price?
When placing a stop-limit order, you need to enter both a trigger price and a limit price.
The trigger price is the price the stock needs to reach to activate your sell order in the market. The trigger price must be lower than the current market price for the stop-limit order to be placed.
The limit price is the price you want the stock to sell at once the trigger has been activated.
What do I need to consider before placing a stop-limit order?
Before placing a stop-limit order, consider the following:
- As with all limit orders, a stop-limit order may not be executed if the stock's price moves away from the specified limit price. This can occur if the stock price is particularly volatile.
- Short-term market fluctuations in a stock's price can activate a stop-limit order, so the trigger price and limit price should be selected carefully.