What Is the Difference between a ‘Stop-Loss’ Order and a ‘Limit’ Order during a Flash Crash?

A stop-loss order becomes a market order once the stop price is hit, meaning it executes immediately at the best available, potentially very low, price. A limit order guarantees a minimum execution price but risks not being filled if the market price falls below the limit.

During a flash crash, a stop-loss order is highly susceptible to negative slippage, while a limit order prevents it.