A stop-limit order is where a security is sold once a specific price is reached. If the security hits the stop price, the order converts to a limit order.
Recently, market volatility has roiled the markets, and unsettled the underlying markets tracked by ETFs.
Nevertheless, “ETFs in many cases performed better than ever in allowing investors to move quickly and efficiently in and out of investment exposures,” Mark Wiedman, global head of iShares at BlackRock (NYSE: BLK), said in an open letter to investors. [ETFs Performed Well in Stressed Market: iShares]
For more information on ETFs, visit our ETF 101 category.
Max Chen contributed to this article.