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The limit order at 18 (or better) would execute at 20 because 20 is better than 18 when selling. You need a stop (stop-loss) order at 18. If the stock drops to 18 the stop order becomes a market order which will execute at the market price when its turn comes around. It could 18, more than 18 or less than 18. If you want to make sure you don't sell at too low a price you might set a stop at 18 and a limit at 15. If the stock drops below 15 the order is not executed.

Doh! I get it now :D So then could I say that stop limits are only useful if you're selling on the way down (my example) or buying when it goes up? Because if I put in a limit order to sell at $22, that means I think it'll peak at $22 and want to sell before it goes back down.
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