A stop-limit order combines aspects of a stop order and a limit order together. When the stop price is reached, the order then becomes a limit order. That means the trade will only be executed at the price you have set, which is your limit. A stop-limit order can be used whether you are buying or selling a stock. If you have an E*Trade account, then you can place a stop-limit order from your trading screen.
Log on to your E*Trade account. Go to etrade.com and insert your user name and password in the appropriate boxes on the right side of the screen. This will take you to your main accounts screen.
Select the "Trading and Portfolios" tab on the top of the screen. This will take you to the "Enter Order" page.
Enter the order type you wish to place. You can choose to either "Buy" or "Sell" when placing a stop-limit order.
Enter the ticker symbol of the company you wish to buy or sell along with the number of shares you wish to trade.
Select "Stop-Limit" under the drop-down menu for the "Price Type." Then enter the "Limit Price" and "Stop Price" you wish to pay when executing the trade. The "Stop Price" is the price at which the trade becomes a market order. The "Limit Price" is the limit of what you are willing to buy or sell the shares for when executing the trade.
Choose the time frame. You can select "Good for Day" or "Good for 60 Days." If you select the first option, the order will only be good for the day. If the "Limit Price" is not reached, then the trade will not execute and the trade will expire. If you select the second option, that time frame extends for 60 days.
Select "Preview Order." The tab is found on the bottom right. Double-check the order to make sure both your "Stop Price" and "Limit Price" are what you want.
Select "Place Trade." The trade will now show up under "Pending Orders" in your account.