A stop-limit order is a type of trade that uses both stop-loss and limit orders to manage and reduce risk. It is commonly used by traders to limit losses and secure profits.

To execute a stop-limit order, two price points need to be set: the stop price and the limit price. The stop price is where the trade should be initiated, while the limit price is the price at which the security should be bought or sold. Once the stop price is reached, the stop-limit order becomes a limit order to buy or sell at the limit price or a better one.
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It's worth noting that stop-limit orders don't guarantee execution. If the price of a stock drops rapidly, the order may not be filled at the desired limit price or at all, which can result in lost profit opportunities if the appropriate prices are not set.

Despite being slightly more complex to set, stop-limit orders can be used on FlexInvest to make trades automatic and manage risk more easily.

Investing in securities or other financial instruments always involves the potential of losing your money. FlexInvest recommends considering your investment objectives and risks before investing. For more information, please read our Risk Disclosures Statement and our Terms & Conditions.