> For the complete documentation index, see [llms.txt](https://docs.bullpen.fi/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.bullpen.fi/trading/order-types/stop-limit.md).

# Stop Limit

Triggers a limit order when price reaches your stop level.

## Use When

You want stop loss protection but also want to control the execution price.

## Parameters

* **Asset**: The token or contract you want to trade
* **Size**: Amount to buy or sell
* **Direction**: Buy/Sell
* **Stop Price**: Price level that triggers the order (based on mark price)
* **Limit Price**: Maximum/minimum price you're willing to accept
* **Time-in-Force**: How long the limit order stays active after trigger (GTC, IOC, FOK, GTD, ALO)
* **Reduce Only** (optional): Only reduces existing position

## How It Works

1. You place a stop limit order with both trigger and limit prices
2. Order monitors mark price
3. When mark price hits your stop:
   * **Buy stop**: Triggers when mark price ≥ stop price
   * **Sell stop**: Triggers when mark price ≤ stop price
4. A limit order is submitted at your specified limit price
5. Limit order executes only if price reaches your limit

## Important Notes

* **Two-stage execution**: First triggers, then needs to fill as a limit order
* **May not fill**: Unlike stop market, your order might not execute if price gaps past your limit
* **Price control**: You control worst-case execution price
* **Trade-off**: Protection vs execution certainty

## Stop vs Limit Price

### For Buy Stop Limit (Breakout Entry)

* **Stop price**: Above current market (trigger level)
* **Limit price**: At or above stop (max price you'll pay)
* Example: Stop at $100, Limit at $101. Triggers at $100, won't buy above $101

### For Sell Stop Limit (Stop Loss)

* **Stop price**: Below current market (trigger level)
* **Limit price**: At or below stop (minimum price you'll accept)
* Example: Stop at $90, Limit at $89. Triggers at $90, won't sell below $89

## Use Cases

### Controlled Stop Loss

* Limit downside while avoiding panic-selling into flash crashes
* Won't execute if price gaps too far (can be good or bad)

### Precise Breakout Entry

* Enter on breakout but only at reasonable price
* Avoid chasing if price spikes too high immediately

## Best Practices

* **Set realistic limits**: Too tight = won't fill; too loose = no different from stop market
* **Typical spread**: 1-2% between stop and limit for normal markets
* **Volatile markets**: Wider spreads (3-5%) or use stop market instead
* **Understand the risk**: Your stop can trigger without filling in fast markets
* **Monitor after trigger**: Be ready to manually intervene if not filling

## Stop Limit vs Stop Market

| Factor               | Stop Limit                            | Stop Market                        |
| -------------------- | ------------------------------------- | ---------------------------------- |
| Price control        | ✅ Yes                                 | ❌ No                               |
| Guaranteed execution | ❌ No                                  | ✅ Yes                              |
| Slippage protection  | ✅ Yes                                 | ❌ No                               |
| Gap risk             | Worse (might not fill)                | Better (fills at any price)        |
| Best for             | Controlled exits, quality > execution | Emergency exits, execution > price |


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