Stop limit order

A Stop-Limit order is a conditional trading order that allows you to set a trigger (Stop Price) and an execution limit (Limit Price) for buying or selling futures contracts. This order type gives you greater control over your trade execution.

 How Does It Work?

• The order activates only when the Mark Price reaches your specified Stop Price.
  
  

• Once triggered, it places a limit order on the order book using the limit price and quantity you’ve set.
  
  

 Important*

• For a Buy Stop-Limit Order, the Stop Price must be above the current Mark Price.
  
  

• For a Sell Stop-Limit Order, the Stop Price must be below the current Mark Price.
  
  

 Stages of a Stop-Limit Order

1. Untriggered – The market hasn't yet hit the Stop Price.
   
   

2. Triggered – The Stop Price is reached; a limit order is placed.
   
   

3. Filled – The limit order is executed, if the market reaches your limit price.

 Example

Current Mark Price = $100
 You place a Buy Stop-Limit Order:

• Stop Price = $105
  
  

• Limit Price = $106
  
  

• Quantity = 2 contracts
  
  

If the Mark Price hits $105, your limit buy order at $106 is placed. If the price never reaches $105, the order remains untriggered.

When to Use

Stop-Limit orders are ideal when you want to:

• Enter or exit a trade only at specific price levels
  
  

• Avoid unexpected slippage
  
  

• Maintain control over price, even in volatile markets