How does a trigger order work in trading

Trigger Order — a powerful tool that allows you to automatically place an order when the price reaches a certain level. Instead of constantly monitoring the chart, you simply set the target trigger price, and the system will handle everything else for you.

What prices can be used for triggers

When creating a trigger order for futures or perpetual contracts, you are presented with a choice among three types of prices:

Last traded price — the most recent price at which a trade was executed on the market. It reflects the actual trading moment at a specific point in time.

Market price — the calculated value of the derivative, based on spot prices across different exchanges. This approach protects you from price manipulation, as one trading center cannot influence the overall indicator.

Index price — an average value calculated from data on major spot platforms. This method provides the most stable and transparent reference for triggering your trigger order.

Practical example of use

Imagine: an asset is trading at $100. You set a trigger order to activate at $110. When the market rises to this level, the system will automatically place either a market order or a limit order — depending on your choice.

This approach saves time and emotions, allowing you to trade stress-free. The trigger order is your reliable assistant in position management strategies.

Important: Trading crypto assets involves risk. Before using trigger orders, make sure you fully understand the trading mechanics and are prepared for possible losses.