Trading & MarketsQuestion 84 of 125
A sell stop limit order differs from a sell stop order because, once triggered, the stop limit order:
a.Is canceled automatically
b.Executes at any price immediately
c.Converts to a buy order
d.Becomes a limit order that executes only at the limit price or better
Explanation
When a stop limit order is triggered at the stop price, it becomes a limit order rather than a market order, so it will execute only at the specified limit price or better. This adds price protection but risks non-execution if the market moves past the limit before filling.
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