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Stop Limit

Stop Limit Explained

A Stop Limit order is similar to a Stop Loss order that it
allows you to limit your losses as well as protect gains
on profitable positions. However, it allows for a
specific limit price entry determined by the
trader/investor.
 Stop Limit
A Stop Limit order will be executed at a specified
price (or better) after a given stop price has been
reached. Once the stop price is reached, the Stop
Limit order becomes a limit order to buy (or sell)
at the limit price or better.

What is a Stop Limit The stop limit order can be used

for Canadian and US listed
Order?
symbols. It can also be used to
Stop Limit Explained capture your gains.
A Stop Limit combines a Stop order with a Limit
order. A stop order is an order that is held until
a specified price (stop price) is reached. When
Stop Limit Buy vs. Sell
that price is reached, the sell order is
automatically triggered as a limit order that is
then sent to the exchange. At that point, the
Stop Limit (Sell)
Limit order will remain active until the order Are orders that become booked limit orders
executes (up to 30 days at a time). when a board lot is traded at or below the
trigger price on the marketplace to which the
The investor is able to set the price at which the
order has been booked.
stock would be sold for; however, it is not
guaranteed that the order will be fulfilled.
Scotia iTRADE offers up to 30 days in the future
Stop Limit (Buy)
to hold the order, after which the order will
expire if not fulfilled. Are orders that become booked limit orders
when a board lot is traded at or above the
Stop Limit orders offer the advantage of
trigger price on the marketplace to which the
providing protection against losses with an
order has been booked.
automatically executed order. This doesn’t
require constant monitoring by the trader.
When a trader uses a Stop Limit order, he or
she is forced to consider the exit point before
the price drops; allowing the trader to make the
risk management decision with less emotion
and more discipline.

2 Stop Limit | Scotia iTRADE

EXAMPLE
XYZ is trading at $13.00 and an investor wants to sell the stock once it begins to
show some downward movement. The investor has put in a stop-limit order to
sell with the stop price at $11.40 and the limit price at $11.30. If the price of XYZ
moves below the $11.40 stop price, the order is activated and turns into a limit
order. As long as the order can be filled at or above $11.30 (the limit price), the
trade will be filled. If the stock gaps below $11.30, the order will not be filled.

Stop Price: 11.40

Limit Price: 11.30

*The above example is for educational purposes only and not to be interpreted as a recommendation.

3 Stop Limit | Scotia iTRADE

How To Set A Stop Limit Order
To set a Stop Limit order on Scotia OnLine®, begin by selecting your account. Fill in
the trade ticket with the symbol, market, order type (sell), and quantity.

Select price type and select ‘Stop Limit’ from the drop-down, and set your stop
price, as well as your limit price. When you sell, the stop price is always higher
than the limit price. Select a day sometime in the next 30 days to keep your order
open for a while.

Come back on a regular basis to adjust your stop price as the stock price moves up
or down.

 Select Price Type: Stop Limit

 Set Stop Price

 Set Limit Price

 If stock hits Stop Price > order is activated; turns into a Limit Order

 If trade can be filled above Limit Price, the security will be sold

4 Stop Limit | Scotia iTRADE

Mailing address Investor Information Centre
Scotia iTRADE 48 Yonge Street (Yonge/Wellington)
PO Box 4002 Station A Toronto, ON, M5E 1G6
Toronto, ON Tel: 1-888-769-3723
M5W 0G4 Email: education@scotiaitrade.com

Scotia iTRADE® (Order-Execution Only Accounts) is a division of Scotia Capital Inc. ("SCI"). SCI is a member of the Investment
Industry Regulatory Organization of Canada and the Canadian Investor Protection Fund. Scotia iTRADE does not provide
investment advice or recommendations and investors are responsible for their own investment decisions. ®Registered trademark of
The Bank of Nova Scotia. Used under license.

© Scotia iTRADE 2014. All Rights Reserved.