A Stop Limit order is an instruction to submit a buy or sell limit order when the user-specified stop trigger price is attained or penetrated. The order has two basic components: the stop trigger price and the limit price. When a trade has occurred at or through the stop trigger price, the order becomes executable and enters the market as a limit order, which is an order to buy or sell at a specified price or better. A Stop Limit eliminates the price risk associated with a stop order where the execution price cannot be guaranteed, but exposes the investor to the risk that the order may never fill even if the stop trigger price is reached. The investor could "miss the market" altogether.
Assume the current market price of a stock is 30:
● If you submit a buy stop order at 33 and limit price at 35, and later the market price rises to 33, the buy limit order will be triggered and filled at a price no more than 35.
● If you submit a sell stop order at 26 and limit price at 25, and later the market price drops to 26, the sell limit order will be triggered and filled at a price no less than 25.
Futu simulates advanced order types on its books and routes the order to its clearing broker when it reaches the trigger price. Futu simulates stop limit orders with the following default triggers:
● Sell Simulated Stop Limit Orders become limit orders when the last traded price is less than or equal to the stop price.
● Buy Simulated Stop Limit Orders become limit orders when the last traded price is greater than or equal to the stop price.
Unless you select specific trading hours, advanced orders will only be triggered during regular trading hours or continuous trading session.