How are stop limit orders executed and filled?
Company news or market conditions which significantly affect the price of a security could prevent a stop limit order from being executed if the price of the security moves through your stop limit price. For example, a stock is quoted at 85 Bid and 85.75 Ask. A sell stop limit order for a listed security placed at 83 is triggered at 83, at which point the order becomes a limit order. The stock would have to trade at 83 again for the sell stop limit order to be considered for execution at 83 or better. If the trigger price of 83 is reached, but the stock price continues to fall below 83, the order is not considered for execution. Like any limit order, a stop limit order may be filled in whole, in part, or not at all, depending on the number of shares available for sale or purchase at the time. The specialists on the various exchanges and market makers have the right to refuse the orders under certain market conditions. Not all securities are eligible for stop orders. A stop limit order
