A stop-limit order is an instruction to place a buy or sell limit order when the client-specified stop price is hit.
The order follows the "buy high and sell low" rule. The stop price and the market price need to follow the rules: the buy stop price needs to be above the current market price, and the sell stop price needs to be below the current market price.
● A sell stop-limit order must be entered below the current market price to stop the loss on a long position or protect its profit.
● A buy stop-limit order must be entered above the current market price to stop the loss on a short position or protect its profit.
● Buy stop-limit order
Assuming stock XYZ has a current price of 10, you submit a buy stop-limit order with a stop price of 15 and an order price of 16. If XYZ's market price rises to 15 , a limit order will be submitted automatically to the clearing broker and filled at 16 or lower.
● Sell stop-limit order
Assuming you hold stock XYZ with a cost price of 10. To prevent the stock from falling sharply in the future, you submit a sell stop-limit order with a stop price of 15 and an order price of 14 when the market price is 20. If XYZ's market price falls to 15 or lower, a limit order will be submitted automatically to the clearing broker and filled at 14 or higher.
Clients can place orders at any time via the app.
Clients can set the order's Time-in-force. If the order is not filled in full, the unfilled portion will be cancelled automatically by the system. If the order fails to be executed due to risk management or other reasons, the order status will update to "failed," and the system will not continue to place the order.
If the order reaches the trigger condition during the preset trading period, the system will automatically submit the order to the clearing broker. The stop-limit order will not be triggered if the trigger condition is met outside the preset trading period.
5.1 Placement of the conditional order does not directly freeze the customer's buying power or position. It will be frozen only when the condition of the order is triggered. Please note that triggering of conditional order does not guarantee that the order will be successfully submitted to the upstream broker or the exchange. The conditional order will be failed to submit due to insufficient buying power or positions of the account at that time.
5.2 After the stop-limit order is triggered, the system will place a limit order automatically as soon as the stop price is hit. However, there is no guarantee that the order will be filled. If the order is not filled during the Time-in-force, it will be cancelled automatically by the system.
5.3 After the stop-limit order is triggered, whether it is filled or not, the trigger conditions will not be effective again. Please place a new order if necessary.
5.4 After the stop-limit order is triggered, the system will place a limit order. For clients' convenience, the order details will be displayed in the original stop-limit order.
5.5 After the stop-limit order is triggered, the system will submit the order only when the client has enough maximum buying power on the account, and financing may be applied.
5.6 Orders cannot be executed in multiple directions at the same time. If the order quantity is greater than the current position, the order will not be executed. For example, a buy and a buyback cannot be executed simultaneously; the same applies to a sell and a short sale.
5.7 The stop-limit order will only be triggered during the preset trading period.
5.8 If short selling of the underlying asset is supported, clients can short sell the underlying. If the account does not hold any long position when the order is triggered, short selling of the underlying will be executed.
5.9 Advanced orders are simulated by FUTU based on the basic orders and irrelevant to Exchanges' advanced orders. Please refer to the actual order page for more details.
Disclaimer
Advanced orders are an order type developed by FUTU for clients' convenience. Meanwhile, FUTU tries to guarantee the execution of such orders. However, please be aware that the execution might be interrupted by poor network connections, server errors, etc. FUTU shall not be responsible or liable for any loss incurred.