Difference: TRADE SAFE STOP LIMIT ORDER http://www.sec.gov/answers/stoplim.htm A stop-limit order is an order to buy or sell a stock that combines the features of a stop order and a limit order. Once the stop price is reached, the stop-limit order becomes a limit order to buy or to sell at a specified price. The benefit of a stop-limit order is that the investor can control the price at which the trade will get executed. But, as with all limit orders, a stop-limit order may never get filled if the stock's price never reaches the specified limit price. This may happen especially in fast-moving markets where prices fluctuate wildly. The use of stop limit orders is much more frequent for stocks that trade on an exchange than in the over-counter (OTC) market. In addition, your broker-dealer may not allow you to place a stop limit order on some securities or accept a stop limit order for OTC stocks. Before you enter into this type of order, you should speak to your broker or financial advisor about how the order works. STOP ORDER http://www.sec.gov/answers/stopord.htm A stop order is an order to buy or sell a stock once the price of the stock reaches a specified price, known as the stop price. When the specified price is reached, your stop order becomes a market order. Buy Stop Order â Investors typically use a stop order when buying stock to limit a loss or protect a profit on short sales. The order is entered at a stop price that is always above the current market price. Sell Stop Order â A sell stop order helps investors to avoid further losses or to protect a profit that exists if a stock price continues to drop. A stop order to sell is always placed below the current market price. The advantage of a stop order is you don't have to monitor how a stock is performing on a daily basis. The disadvantage is that the stop price could be activated by a short-term fluctuation in a stock's price. Also, once your stop price is reached, your stop order becomes a market order and the price you receive may be much different from the stop price, especially in a fast-moving market where stock prices can change rapidly. An investor can avoid the risk of a stop order not guaranteeing a specific price by placing a stop-limit order. The use of stop orders is much more frequent for stocks that trade on an exchange than in the over-counter (OTC) market. In addition, your broker-dealer may not allow you to place a stop order on some securities or accept a stop order for OTC stocks. Before you enter into these types of orders, you should speak to your broker or financial advisor about how these orders work.
I've always felt that stop limit orders (to sell) are generally a bad idea. Basically, when using them you're saying "if the price drops to X, I want to protect myself and bail out--UNLESS it drops below my limit price without executing, in which case I'll hold on, clench my teeth and pray for the best." That's silly to me. If you're going to protect yourself, protect yourself. Don't screw around with a limit order and risk not getting out of the trade.
I love stop limit orders, but only for entry. For exit I only use stops. Sometimes I miss out on entries due to fast market movement, but you can't win them all. For getting out, I don't want to risk taking a bath with a stop limit. I'd rather just get out, slippage be damned.
I totally agree with you since the stop loss property helps me allot in manging my account and especially when I'm not sitting by the computer.If you wanna know more about the stop loss forum check in http://forexforumnow.com/index.php/topic,241.0.html tahnks and see ya there.