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 price", the pre-set order will be executed.
Trigger price/Trigger: Once the latest traded price reaches the "trigger price"/” Trigger”, the pre-set order will be executed.
Order price: The price users entered to sell/buy contracts. Once the latest traded price reaches the "trigger price"/” Trigger”, the system will automatically place the order at the pre-set order price to order book.
Contracts Amount: The amount users entered to sell/buy contracts. Once the latest traded price reaches the "trigger price"/” Trigger”, the system will automatically place the order of this pre-set contracts amount to order book.
A user has 100 conts call options with average position opening price of 110 USDT. He thinks the key support will be near 100 USDT; if the price falls below 100 USDT, there will be a large drop. To avoid huge loss, the user can set Trigger Order function to stop loss.
Specific operation method:
Order Method 1: choose “Trigger order”, set a trigger price of 100 USDT, enter quantity 100 conts and type price 99 USDT, then click “sell to close call options” button to place an order. When the latest traded price reaches at 100 USDT, the system will execute the trigger order and send it to the order book at the price of 99 USDT, which means that the trigger order becomes an ordinary limit order.
Order Method 2: choose “trigger order”, set a trigger price 100 USDT, select desired price level among “Optimal 5”, “Optimal 10” or “Optimal 20” and enter the contract quantity, then click “Sell to close call options” to fill the order. When the latest traded price reaches at 100USDT, the order will be triggered and quickly filled with the BBO price you selected.
Check open order: after placing a trigger order, user can find the order under “Open Orders – Trigger Orders” to check the orders. Users can cancel the order before it’s triggered.
View order history: after getting triggered, the trigger orders can be found under “Order History – Trigger Orders”.
- Users cannot place trigger orders when that types of contracts are in delivery, settlement or suspension status, which means trigger order function is only available for trading-in-progress contracts.
- There is order limit for trigger orders. Users cannot place trigger orders for one type of contract when surpassing order limit of that type of contract.
- Once the latest traded price has reached the "trigger price", the pre-set order will be executed. But if the pre-set order price is not within the price limit (i.e. users set a buy price that is higher than the highest buy price or a sell price that is lower than the lowest sell price), the order will fail to be triggered.
- When the close trigger orders get executed, the system will place the orders in order book, If the amount of orders placed go below the orders available to close in the users’ account, the actual order quantity will follow the available amount in their account finally. Please note that if the pre-set order price is not within the price limit (i.e. users set a ask price that is higher than the highest ask price or a bid price that is lower than the lowest price due to volatile market, the trigger order designation might fail to be triggered or fail to be fulfilled successfully even after getting triggered.
- Trigger orders may not be triggered due to sharp fluctuations, price limits, position limits, insufficient margins, insufficient positions to close, non-trading status, network issues, or other system issues
- Before the order getting triggered, the margin or positions will not be frozen till the trigger order gets triggered opening/closing positions at pre-set order price and amount.
- Once the trigger order has been triggered, it will be transferred to limit order and placed to order book at the pre-set price by the user. Limit Order is a kind of order type that will only be filled at the market price when the closing order price is lower than market price or the opening order price is higher than market price. Please note that it depends entirely on the market conditions at the time whether the order can be successfully filled or not.