What is difference between price and trigger price?
The price at which your buy or sell order becomes active for execution on the exchange is known as the trigger price. In other words, the order is delivered to the exchange servers whenever the stock price reaches the trigger price you selected.
How do you determine a trigger price?
The trigger price should be a little lower than the price at which one wants to initiate a buy order. As soon as the trigger price of ₹1290 is reached, an order for buying 1 share of L at ₹1289.5 is placed.
What is trigger price with example?
For example, you buy 100 shares at a price of Rs 350. You put a Stop Loss order to minimize your losses in case the share price goes down. Your trigger price is Rs 345 and the limit price is Rs 340. Now as soon as the share price reaches 345 or goes below, a Sell order will be automatically placed by the system.
Why trigger price is used?
Trigger price is the price at which your buy or sell order becomes active for execution at the exchange servers. In other words, once the price of the stock hits the trigger price set by you, the order is sent to the exchange servers.
Why trigger price should be greater than market price?
When placing a buying Stop Loss [SL] order, the trigger price entered should be lesser than the limit price. When placing a selling Stop Loss [SL] order, the trigger price should be higher than the limit price. If the above rules is not adhered to, the order will get rejected & the above error will be displayed.
What is the difference between limit order and trigger order?
Remember that the key difference between a limit order and a stop order is that the limit order will only be filled at the specified limit price or better; whereas, once a stop order triggers at the specified price, it will be filled at the prevailing price in the market–which means that it could be executed at a …
How do trigger orders work?
Trigger order is a pre-set order, that users place ahead with an order price and contracts amount (like a limit order), which will only be triggered under specific conditions (a trigger price/trigger). Once the latest traded price has reached the “trigger”, the pre-set order will be executed.
What is trigger price in stock market with example?
What is a trigger price?
(ˈtrɪɡə praɪs ) if a commodity reaches a trigger price, its price, or the conditions governing its sale are changed; a price at which certain consequences ensue. Unfortunately, the trigger price was set so high as to make a rebate all but impossible. Collins English Dictionary.
What means trigger price?
How do you use trigger order?
What is trigger order in trading?
What is trigger order? Trigger order is a pre-set order, that users place ahead with an order price and contracts amount (like a limit order), which will only be triggered under specific conditions (a trigger price/trigger). Once the latest traded price has reached the “trigger”, the pre-set order will be executed.
Why trigger price should be greater than price?
How do you set limit price and trigger price?
– For a Sell order, the limit price must be less than or equal to the trigger price. If, for a stop loss order to buy, the trigger price is 93.00, the limit price is 95.00 and the market (last trade) price is 90.00, then this order will be released into the system once when the market price reaches or exceeds 93.00.
The price at which your buy or sell order becomes active for execution on the exchange is known as the trigger price. In other words, the order is delivered to the exchange servers whenever the stock price reaches the trigger price you selected.
What is trigger price and stop loss?
Trigger Price When the level of a stock reaches or exceeds the Trigger Price, your Stop Loss order is triggered. The order is completed at the limit cost you specified. So the value at which your order of buy or sell will be activated to complete by the exchange platform is called Trigger Price.
What is’sell’trigger in share market?
Similarly, a trader may define a ‘Sell’ trigger in the trading platform that when the price reaches a certain level it will automatically place an order to sell at the market. Trigger Price is defined in terms of an instrument’s price. Also read: What is Expiry in Share Market? How does trigger price work?
What happens when a stock hits the trigger price?
When a stock price hits the trigger price, it goes the exchange as an active order and depending upon the type (limit/market) gets executed further. (It functions like a real trigger of a gun, which means once it’s shot the bullet gets activated) It is used for the stop-loss orders.