A Stop Loss Limit (SL-Limit) Order is a type of stop-loss order where the order is placed with both:

• A Trigger Price – The price at which the stop-loss order is activated.
• A Limit Price – The maximum or minimum price at which the order can be executed.
   

Example of a Stop Loss Limit Order:

• You hold a stock trading at ₹100.
   
• You set a Stop-Loss Limit order with:
  
  • Trigger Price: ₹91
  • Limit Price: ₹90.90
     
• If the price falls to ₹91, the order gets triggered, and a Sell Limit Order is placed at ₹90.90.
• The order will Only Execute If Buyers Are Available at ₹90.90 or higher.
   

Risk of Stop Loss Limit Orders:

• If the market is highly volatile and falls below the limit price (₹90.90 in this example), the order may remain unexecuted, leading to higher losses.
• To avoid this, traders should set a reasonable gap between trigger and limit prices based on the stock’s liquidity and market conditions.