Similar to a stop order, the stop-limit order becomes a limit order, rather than a market order, when the security trades at the price specified on the stop.
See Also:
Limit Order: A trading order placed with a broker to buy or sell stock or options at a specific price. A limit order may also be placed "with discretion". In this case, the floor broker executing the order may use his (her) discretion to buy or sell at a set amount beyond the limit if he (she) feels it is necessary to fill the order.
Order: A ticket or voucher representing long or short securities and options.
