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What are the advantages and disadvantages of stop limit order?
Wiki User
∙ 12y ago
kwana
Wiki User
∙ 12y ago
The advantages of a stop limit order are that it allows traders to have more control over the price at which their trade is executed, thus reducing the risk of a bad fill. It also helps protect against sudden price fluctuations and can be effective in managing risk. However, a disadvantage is that if the price does not reach the specified stop price, the order may not get executed, potentially resulting in missed trading opportunities. Additionally, there is still the possibility of slippage if the market moves quickly and there are not enough buyers or sellers at the specified price.
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