Sign UpWhat Are Trigger Orders and How Do They Work?
Beginner
2024-11-08
Definitions
A trigger order is a kind of order with a preset order price and trigger condition. When the latest price reaches the trigger price, the system will place an order at the preset price. Trigger orders allow you to preset your buying and selling price to automatically take profit (TP) or stop loss (SL) without the hassle of eyeing on the market.
Trigger price: When the Latest Price reaches the Trigger Price, the order will be triggered to be placed at a preset order price and be pending for transaction.
Quantity: The Order Quantity when the order is triggered.
Scenarios
If you want to take profit (TP)
Suppose you are trading BTC/USDT. You purchase 1 BTC at the price of 70000 USDT, and the price is estimated to find resistance at 75000 USDT. If it breaks through the resistance level, it might experience a correction. Therefore, if you want to take profit at the price of 75000 USDT, you can preset a Trigger Price, with the Selling Price being 75000 USDT and the Quantity being 1 BTC, and click " Sell BTC". Then the order will be triggered when the price climbs to 75000 USDT.
The principle is the same if you wish to stop loss (SL) via a trigger price.
Guaranteed price
To provide users with a better trading experience, Toobit has updated trigger order functions in the latest App version 1.7.6 and orders will be executed at guaranteed prices. It allows you to set a target price for a specific token like BTC and a guaranteed purchase ratio. Essentially, you’re placing a conditional buy order that triggers only if the price dips to your desired level.
Notes
You can only place a trigger order when the transaction is available.
- Your order quantity must meet any limit requirement applicable to your type of trigger order.
- Your asset will not be frozen before the trigger order is triggered. It will only be frozen when the trigger order is triggered, and an order based on the preset price and quantity is placed.
- A trigger order may fail to be placed due to price limit, insufficient balance, the non-transaction status of the order, network issues, or system issues.
- When a trigger order is successfully triggered as a limit order, it will be placed at the preset order price but may not be executed. A limit order means when the selling price is lower than the market price, or the buying price is higher than the market price, it will be traded at the best price available.
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