Stop Limit OrderA Stop Limit order makes it easier to get into a stock at an exact price by combing the stop order with a limit order.
When you place a stop limit order on a stock it needs to trigger both the stop order and the limit order. For instance you place a stop limit order to buy stock XYZ at $55 with a limit of $56. The stock heads up and hits $55. Now the order turns into a limit order. In order for the stock to be bought in needs to stay below $56. This can be a benefit if you compare it to a regular stop order. Which will get you in at any price once the stock hits $55 or higher. This order protects you from gaps. So if a stock opens up at a much higher price then you want to get into it at you will not have to. That is the major benefit of this order. The drawback is that you might not actually get into the stock at all. If you just want to enter a position this is not the best order. A market order or a stop order may work better.
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