What is trigger price in case of both Buy and Sell and how is it different from price in limit order?
Trigger price is a BUY/SELL order condition that you add along with your stop loss order.
Once this condition is met (your trigger price) , your STOP-LOSS order is converted into a normal BUY/SELL limit or market order by the exchange servers.
STOP-LOSS ORDERS were initially designed to be placed for exiting an open trade position with minimum loss.
However, we are now using this special order as an entry order for trading breakouts.
TRIGGER PRICE is the price at which the exchange servers will make your BUY/SELL order active for execution.
After the stop-loss order has been triggered, LIMIT PRICE is the price at which your shares will be sold or bought.
Many a times my order has been placed at the trigger price itself.
This happens if:
- Your trigger and limit price are the same. or
- You have placed a SL-Market order.
Sorry, am a bit confused. can you please explain with an arbitrary BUY example ?