Price Trigger

A price trigger is the condition or specific price level that causes an order to become active or executed. It is the core mechanism behind various automated order types like stop orders or stop-limit orders.

When the market price touches or crosses the trigger price, the exchange systems automatically activate the instruction associated with it. This allows traders to set up complex strategies that execute without manual intervention.

For example, a trader might set a trigger price to enter a new long position once a certain resistance level is breached. Price triggers require accurate data and reliable exchange performance to ensure they function as expected.

They are fundamental building blocks for automated trading algorithms.