Trigger order is a convenient type of auto-trading function where users can set a trigger price and order price so when the latest traded price in the market reached the preset price, the system will perform the transaction according to the order price and quantity.
When users need to stop profit or stop loss (a.k.a. stop limit function), they can set the trigger order in advance to close the transaction and the system will automatically help the users keep profits or reduce losses.
You only need to understand 3 parameters!
1. Trigger Price: The system will place the order when the latest traded price reaches the trigger price.
2. Order Price (a.k.a. execute price): The system will perform the transaction according to the order price when the latest traded price reaches the trigger price.
*Trigger Price and Order Price can be the same price.
3. Quantity: This is the number of transactions to be executed when the trigger order conditions are met.
Example 1:
Using Stop Profit/Stop Loss in "Open Long" Positions:
When BTCUSDT was at the price of 10000 USDT and believing that the BTC price will rise, Da Bing opened position with 【Buy (long) (bullish)】order at 10x leverage so he can set the Stop Profit/Stop Loss as follows:
Setting Stop Profit
1. Click and Switch to 【Close】 position
2. Select 【Trigger】 order method
3. Set the trigger price at 20200 USDT, order price at 20210 USDT and 100 for the quantity.
4. Click 【Sell Long】 to complete the settings for Stop Profit
(note: the position of the function is located at the bottom of the K line in the Contract Trading page)
Congratulations! You have successfully set up a stop profit function for your position so the system will automatically perform transaction to close your position to stop profit at 10210 USDT when BTC price rises to 10200 USDT.
Setting Stop Loss
1. Click and Switch to 【Close】 position
2. Select 【Trigger】 order method
3. Set the trigger price at 9000 USDT, order price at 9010 USDT and 100 for the quantity.
4. Click 【Sell Long】 to complete the settings for Stop Loss
Congratulations! You have successfully set up a stop loss function for your position so the system will automatically perform transaction to close your position to stop loss at 9010 USDT when BTC price falls to 9000 USDT.
(note: the position of the function is located at the bottom of the K line under the Trigger tag)
Example 2:
Using Stop Profit/Stop Loss in "Open Short" Positions:
When BTCUSDT was at the price of 10000 USDT and believing that the BTC price will fall, Da Bing opened position with 【Sell (short) (bearish)】order at 10x leverage so he can set the Stop Profit/Stop Loss as follows:
Setting Stop Profit
1. Click and Switch to 【Close】 position
2. Select 【Trigger】 order method
3. Set the trigger price at 9000 USDT, order price at 9010 USDT and 100 for the quantity.
4. Click 【Buy Short】 to complete the settings for Stop Profit
(note: the position of the function is located at the bottom of the K line in the Contract Trading page)
Congratulations! You have successfully set up a stop profit function for your position so the system will automatically perform transaction to close your position to stop profit at 9010 USDT when BTC price falls to 9000 USDT.
(note: the position of the function is located at the bottom of the K line under the Trigger tag)
Setting Stop Loss
1. Click and Switch to 【Close】 position
2. Select 【Trigger】 order method
3. Set the trigger price at 10200 USDT, order price at 10180 USDT and 100 for the quantity.
4. Click 【Buy Short】 to complete the settings for Stop Loss
Congratulations! You have successfully set up a stop loss function for your position so the system will automatically perform transaction to close your position to stop loss at 10190 USDT when BTC price rises to 10200 USDT.
(note: the position of the function is located at the bottom of the K line under the Trigger tag)
Key Points:
1. Trigger order can easily help you to realize stop profit or stop loss automatically without the need to monitor the market.
2. Whether you have a long or short position, you can always use trigger order and the order price can be set using limit or market price.
Editor: BiKi Trading Academy
Update: Contract Trading Open Class Team