What is a Trigger-limit order?
A trigger-limit order is an order type that automatically converts limit orders into an order based on market conditions. Unlike a market order or a limit order, the trigger-limit order will not be directly executed, but only be realized when the trigger condition takes effect.
The advantage of trigger-limit orders is that once it has been set, it will automatically execute only when the predefined conditions are met by the market. A trader can use the trigger-limit order to take profits and limit losses or simply to open a position only after the market price has reached your desired level.
Using the trigger-limit order to perform a stop loss?
1. The trigger-limit order can be performed to open or close a position.
2. To set your trigger-limit, enter your trigger price, limit price and amount.
You can choose between “last price”, “fair price” and “index price” for your trigger price type. If you select the index price as the trigger price type, your order will be triggered only when the index price reaches your desired level.
Limit Price: This refers to the price at which you would like to make a purchase or sale once the trigger price has been reached.
Amount: The number of contracts you would like to purchase.
Valid Term: The validity of your trigger-limit order - you can choose between 1 day or 1 week.
3. Once you have confirmed your trigger-limit order, you can view it in the Trigger Limit Order tab. Do ensure that you have sufficient assets to make the purchase or your trigger-limit order may fail to execute.
How much does it cost to set a trigger-limit order?
The only fees that apply are the actual transaction costs of executing a purchase or sale.
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