What Is a Stop-Loss vs a Stop-Limit Order?

Beginner Q: What’s the difference between a stop-loss and a stop-limit order?

Short answer starter:

• Stop (stop-loss) order: when the stock trades at your stop price, the order becomes a market order. You’re pretty much guaranteed to get out, but not at a guaranteed price. In a fast drop or an overnight gap, your fill can be well below the stop (Investor.gov).
• Stop-limit order: when the stop price is hit, the order becomes a limit order at your limit price or better. You control the price, but you might not get filled at all if the stock blows through your limit (Investor.gov).

Example: you set a stop at $50 and a limit at $49.50. If the stock gaps from $52 to $47 at the open, a stop-loss sells somewhere near $47. A stop-limit doesn’t sell, and you’re still holding.

The trade-off is certainty of exit vs. certainty of price. This matters a lot around earnings and with leveraged ETFs. Not financial advice.

Which do you use, and has a stop ever saved you or burned you?