Stop limit order

A stop limit order is an instruction to place a buy or sell limit order when the client-specified stop price is hit. The difference between a stop order and a stop limit order is that a stop order ensures quick execution through a market order, but is not guaranteed the transaction price, while a stop limit order is guaranteed the transaction price through a limit order, but does not ensure execution.

A stop limit 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.


1. Examples

● 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 or higher, a limit order will be submitted automatically to the clearing broker and may be filled at 16 or lower.

● Sell stop limit order

Assume you hold stock XYZ with a cost price of 10. In case the stock price falls 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 may be filled at 14 or higher.


2. Order time 

Clients can place stop limit orders at any time via the app.


3. Time-in-force 

Clients can set a stop limit order's time-in-force. If the order is not filled in full during the validity period, the unfilled portion will be cancelled automatically by the system. 

If the order fails to be executed due to risk management or other reasons, it will be in "Failed" status, and the system will not continue to submit a limit order.


4. Trigger time

If a stop limit order meets the trigger condition during the continuous trading session, it will be triggered and the system will automatically submit a limit order to the clearing broker.

The stop limit order will not be triggered if the trigger condition is met outside the continuous trading session.


5. Notes

5.1 After a stop limit order is triggered, there is no guarantee that a limit order will be successfully placed due to reasons such as insufficient buying power or positions.

5.2 After a stop limit order is triggered, the system will place a limit order automatically. However, there is no guarantee that the order will be filled. If it is not filled during the time-in-force, it will be cancelled automatically by the system.

5.3 After a 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 a 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 a stop limit order is triggered, the system will submit a limit order only when the client has enough maximum buying power or positions in the account, and margin may be used. 

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 A stop limit order will only be triggered during the preset trading period.

5.8 Advanced orders are simulated by Futu AU based on the basic orders and irrelevant to those advanced orders provided by specific exchanges. Please refer to the corresponding order introduction page for more details.

Disclaimer

Stop Limit Order is an advanced order type provided by Futu AU for the client's convenience. While Futu AU endeavors to provide reliable trading services, there can be no guarantee to the absolute reliability of the order algorithm. Futu AU shall not be held liable for any loss or damage arising from any failure to execute an order due to network interruption, server abnormality, and other factors beyond its control.