Markets & trading
A stop order activates after a trigger price is reached; a stop-limit then submits a limit order instead of an unrestricted market order. Triggering and execution are separate events.
Make it click
An alarm does not itself solve the problem; it activates a planned response. If that response includes a strict boundary, conditions may move beyond it before action completes.
Now put that into markets
A stop-market seeks execution after activation and can slip. A stop-limit controls the subsequent price but can fail to execute after a gap.
Trigger source, session eligibility and order handling vary by venue and broker. Fast markets can pass through multiple prices between activation and fill.
Read the provider's trigger definition and review both stop and limit prices. Model gaps, halts and thin trading rather than assuming a continuous price path.
Stops do not cap losses precisely and may activate during short-lived moves. A protective instruction can create a new execution risk.
Takeaway
