Example: Suppose you want to invest in a certain stock. Because you are not interested in buying the share unless its price begins to go up, you want your broker to buy shares in that stock only if its per-share price increases to 8.50 Swiss francs or more. You plan to hold the shares in hope that their price will increase to 12 francs per share, and sell them when they reach that price. You also want to brace your investment against serious losses by instructing your broker to sell the shares as quickly as possible if their price falls to 8 Swiss francs.
By using a stop + threshold triggered order you can give all of these instructions to your broker in a single order.
The stop market order with a stop limit of 8.50 francs tells the broker that you want to buy the shares if the stock’s rate reaches 8.50 francs or more, at which point a market order will be triggered and the broker will buy the shares at the best available ask price. The threshold triggered order tells the broker that they should sell the shares at the best available bid if the price of the shares either passes the upper threshold of 12 francs per share or falls below the lower threshold of 8 francs per share.