A Stop-limit order combines a stop trigger and a Limit order. Stop-limit orders allow traders to set the minimum profit they are willing to take or the maximum amount they are willing to lose on a trade. Once you set a Stop-limit order and the trigger price is reached, a Limit order is automatically placed, even if you are disconnected or offline. You can place Stop-limit orders strategically by considering resistance and support levels and the volatility of the asset.
In a Stop-limit order, the stop price is the trigger price for the exchange to place a Limit order. The limit price is the price at which your order will be placed. You can customize the limit price, which is typically set higher than the stop price for a buy order and lower for a sell order. This difference is to account for changes in market prices between the time the stop price is triggered and the time the Limit order is placed.