Use-cases for stop-limit order where stop price is lower than limit price on Sell Order

Question

I understand the typical use-cases mentioned on investopedia etc. for sell orders using stop-limit orders where the limit price is lower than the stop price e.g.,

Type: Sell
Current Price: 50$
Stop Price: 45$
Limit Price: 43$

However, is there a use-case that makes sense to use a limit price that is higher than the stop price, e.g.,:

Type: Sell
Current Price: 50$
Stop Price: 45$
Limit Price: 46$

What would be the intention behind this strategy? What about the other way around on a Buy Order, using a Limit Price that is lower than the stop price?

Answer 1

The purpose of a sell stop limit order is to sell when price drops to a specific price. The higher stop price activates the limit order. The attached limit price is the lowest price you're willing to accept. This is demonstrated in your first example:

Current Price: 50$

Stop Price: 45$

Limit Price: 43$

If you reverse these two components, it's just a limit order to sell at $46:

Current Price: 50$

Stop Price: 45$

Limit Price: 46$

Answer 2

I struggle to see a use case where you would want to sell for 46 or higher, but only if the price was below 45 before - if you are happy to sell for 46 you could just do it without the stop.
Unless you think the dip and slight recovery together are an indication that the stock will fall even further.
Not an obvious conclusion but if you think so, you can do it.