Limit stop loss

[SkyHigh]

In this case you may want to not put the LMT and STP both at the same price (1.22 USD in your picture). In the picture shown the STP triggers at 1.22 USD, however your order will only be filled at a price of 1.22 or higher. So if the price continued to drop to e.g. 1.21 USD your stop order will not be executed because it is below the LMT limit you have set. It would be better to have the LMT a bit lower than the STP price. For example: STP triggers at 1.22 USD and the limit price is at 1.20 USD. In that case your order will be filled at a price which is 1.20 USD or better.

Thank you.

I was hoping for a clarification on this. However. Feels like a bad way to go about a stop loss...

What if the price gaps down to 1.19 at the Pre-open and goes straight down to 0 on a slow gradual decline.

Am I supposed to make my Stp price at 1.22 and limit stp at 0 to avoid such scenario?

 

[HobbyTrading]

What if the price gaps down to 1.19 at the Pre-open and goes straight down to 0 on a slow gradual decline.

Bingo! That is exactly the risk when you use a limit price, instead of a market order. Some other posters in this thread already mentioned that the only way to avoid this would indeed be to set the limit price to zero. Then your STP LMT order behaves the same as a STP (+MKT) order.

 

[Turveyd]

Bingo! That is exactly the risk when you use a limit price, instead of a market order. Some other posters in this thread already mentioned that the only way to avoid this would indeed be to set the limit price to zero. Then your STP LMT order behaves the same as a STP (+MKT) order.

Interesting, wish I had a stock account, so I could try that with 1 cheap share.