Research Workbench · Trading workflow
A price instruction and an execution instruction solve different problems. Change the hypothetical path below to see when a sell order could activate, when it may remain open, and why a stop price is not a promised fill.
Fixed example: You already own a stock last seen at $50. You are comparing a market sell, a $48 sell limit, a $48 sell stop, and a sell stop-limit with a $48 trigger and $47 minimum sale price. The orders are considered immediately before the next illustrated trade. This is an educational model, not a live quote or recommendation.
Choose what happens next
Compare four sell orders
What this exercise cannot promise
The displayed bid is only an illustrative price level, not a complete order book. An eligible order may receive a partial fill, a different price or no fill, depending on liquidity, order size, routing and broker rules. Market and stop-market orders prioritize execution over a minimum price. Limit and stop-limit orders restrict price but can remain unfilled. Your broker may use last sales or quotations to trigger a stop, and extended-hours availability can differ.
Before entering a real order: Check the broker’s trigger convention, regular versus extended-hours settings, order duration, current bid/ask spread and the amount of liquidity available. If a stop-limit remains open after a gap, you still own the shares and remain exposed to further price moves.
Why this is different from position sizing
The position-size tool models a loss only if shares are sold at its assumed stop price. This exercise shows why that fill is not guaranteed. It helps you identify the execution question to ask before treating a stop as a hard risk cap.
Primary sources and method
- SEC Investor Bulletin: Understanding Order Types — market, limit, stop and stop-limit mechanics and execution caveats.
- FINRA: Stop Orders During Volatile Markets — gap and fast-move risk.
- SEC Investor Bulletin: Extended-Hours Trading — order-type and liquidity differences outside regular hours.
Scenario values are invented solely to demonstrate order mechanics. “Eligible” means the displayed price satisfies the example instruction; it is never a guarantee that a trade occurs. Reviewed September 28, 2026.