This lesson clarifies the distinction between Stop and Stop Limit orders. When we are talking about stop orders its main purpose is to exit existing positions, either to lock in profits or limit losses. A stop order can also be used to enter a new long or short position when a specific price is reached. But you must be careful because Stop orders are not guaranteed execution. They may fill significantly away from the Stop price, potentially impacting your intended outcome. On the other hand, Stop Limit orders can be used to manage existing positions or enter new ones at specific price points. Its functionality relies on combining a Stop price trigger with an additional Limit price. When the Stop price is breached, the order converts into a Limit order, but will only execute at or below the designated Limit price. When contrasting the alternative of stop orders, we can see that stop limit orders offer more control over execution price. However, there’s a risk that the order may not fill at all if the market price doesn’t reach the Limit price. To know more, take into special consideration this lesson which provides a step-by-step guide on creating both order types, including details on order entry, trigger price selection, and time-in-force options. And remember that all orders can be monitored within the “Orders” tab of the Activity panel.