What is a trigger order?
A trigger order, also known as a conditional order or stop order, is an order type that is executed only when a specific condition or trigger price is met. It allows you to set a trigger price at which the order becomes active and is sent to the market for execution. Once the trigger price is reached, the order is converted into a market or limit order and executed according to the specified instructions.
For example, you can set a trigger order to sell a BTC if its price drops to a certain level. When the BTC price reaches or falls below the trigger price, the order is triggered, and it becomes an active market or limit order to sell the BTC at the best available price. Trigger orders are commonly used to automate trade executions and manage risk by setting predefined conditions for entering or exiting a position.
Description
If the market price is $100, a trigger order with a trigger price of $110 is triggered when the market price rises to $110 and placed as a corresponding market or limit order.