Stop_limit order

If I place a stop_limit order with stop_price=100 and limit_price=100 does it mean that I will buy at 100?

My intention is not to by unless the price reaches 100 or more.

@cksrc A buy stop limit order will do two things. 1) it will wait until the “price” is greater than or equal to the stop price, then 2) that order will be cancelled and then trigger a new limit order. That second limit order is just a plain vanilla limit order. The limit price is the most you want/will pay to buy the security.

So, if the intention is to wait until the price reaches 100 or more, then a stop order with a stop price will do it. If it’s a stop-limit order, then a limit order will be triggered. However, a buy limit order will fill at or below the limit price. There is the chance that it won’t fill at all if the price is rising. Often traders set the limit price above the stop price for this reason.

The other alternative is a stop-market order (or often referred to as simply a stop order). For that type of order, once the stop is reached, a market order will be triggered. There are no guarantees at what price that market order will fill, but the benefit is it should always fill (unlike a stop-limit order).

One thing to be aware of is all it typically takes is a single order, filled at or above the stop price, to trigger the stop. This is why I put “price” in parenthesis above. A high price could trigger the stop even though most other prices may be less (or could be going down). For this reason, many traders implement their own logic and simply monitor the prices . Then based upon an average or some other calculation, submit a plain limit or market order and not use a stop order.

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@Dan_Whitnable_Alpaca , normally, such answers help me sleep at night, but this one got me out of bed to say THANK YOU. :sweat_smile:
Crystal clear.

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