A buy stop limit is used to purchase a stock if the price hits a specific point. It helps traders control the purchase price of stock once they’ve determined an acceptable maximum price per share. A stop price and a limit price are then set once the trader specifies the highest price they are willing to pay per stock. The stop price is a price that is above the market price of the stock, whereas the limit price is the highest price that a trader is willing to pay per share.
For example, if John intends to buy ABC Limited stocks that are valued at $50 and are expected to go up today, he can put a stop price at $55. It means that once the price reaches $55, the trade is executed, and the order is turned into a market order. If the limit order is capped at $60, the order is processed after reaching $55, and if it exceeds $60, it is not fulfilled.
I could just set a limit order for the same price and not evne bother using the stop limit order.
And why would I want to buy in as the price goes up? You buy low and sell high right?