Stop Limit Order
A stop limit is a stop order that triggers at one price, but will only fill above a limit price. For example, if AUY is trading at $3.77 and you want to exit the trade if it drops below $3.56 you could place a Stop Limit order with the stop price at $3.56, and the stop limit price at $3.55. What this does is allows a small amount of wiggle room in case the stock is dropping quickly. In this case when $3.56 is triggered, your brokerage issues a “sell limit” order. Essentially it enters a sell order at $3.55. You will only get filled at $3.55 or higher. The risk in a Stop Limit order is if the stock shoots past your limit before you are filled. Maybe it drops quickly, trades at $3.56, but then doesn’t trade again until $3.54. In this case you wouldn’t get filled, and the stock could continue lower with you still in it.