Think of it as a safety net. Traders use it to jump into a stock that is gaining momentum without overpaying if the price "gaps" up too high. đź’ˇ How It Works A stop-buy limit order requires two distinct price points:
A stop-buy limit order is a sophisticated trading tool that triggers a purchase only when a specific "stop" price is hit, but limits the maximum price you'll pay to a "limit" price. stop buy limit order
Your broker buys shares they are at or below your Limit Price . ⚖️ Why Use It? (Risks vs. Benefits) Stop-Limit Order: What It Is and Why Investors Use It Think of it as a safety net
: The price that activates your order.