What is a trigger order?
A trigger order submits an actual buy or sell order to the trading system only after a preset condition is met. In crypto trading, the condition is often a price reaching a particular level. The trader sets the trigger condition and the direction, quantity and type of the subsequent order in advance; the system first monitors the condition and then attempts submission when it is met.
What condition does the system monitor?
A price trigger has two parts: which price is used and the level at which that price triggers the order. For example, if a buy is set to trigger when a token’s last traded price rises to 105 USDT, the system monitors whether the most recent execution price reaches or exceeds 105. USDT is the quote asset here, and the numbers are illustrative.
Conditional orders in derivatives trading may support different reference prices:
- Last traded price: the execution price of the market’s most recent trade.
- Mark price: a contract reference price calculated under the platform’s rules, mainly for position valuation and risk assessment.
- Index price: an asset reference price calculated from specified sources and methods, usually combining several spot markets.
These prices can differ, so the same trigger level may be reached at different times depending on the reference selected. Supported prices depend on the product settings; the corresponding entries explain their calculation.
How does the order execute after the condition is met?
Triggering only starts order submission; actual execution must still occur through the subsequent order. An order book records unfilled buy and sell quotes and their quantities. The trading system pairs orders with compatible prices and other conditions, a process called matching.
The subsequent order uses the preset direction and quantity:
- If a market order is submitted, the system attempts prompt execution against available quotes; the execution price may differ from the trigger price.
- If a limit order is submitted, a buy cannot execute above the limit, and a sell cannot execute below it. Compatible existing quotes can execute immediately; otherwise, unfilled quantities wait or cancel according to the order’s time-in-force setting.
The trigger price determines “when submission begins,” whereas the limit determines “which execution prices are acceptable”; they can differ. The market can also jump across the trigger, for example from 104 to 106. Even if the condition of rising to 105 is satisfied, the system does not return to 105 to arrange execution.
Once the actual order has been submitted, a subsequent price reversal does not automatically cancel it. Conversely, checks on balances, position quantities or price limits can prevent submission; successful submission can also lead to only a partial fill. Execution results therefore require distinguishing “triggered,” “submitted” and “filled.”
How does it differ from an ordinary limit order?
An ordinary limit order participates in matching immediately after submission; a trigger order waits for a condition before submitting the actual order. An ordinary limit price is an execution boundary, not a condition to wait for the market to reach before submission begins.
Suppose a token’s current last traded price and lowest ask are both 100 USDT. These are independent examples, assuming valid orders and sufficient sell quantity at 100:
- Ordinary buy limit of 105: the ask of 100 is below the buying cap of 105, so it can execute immediately at 100 without waiting for the market to rise to 105.
- Trigger of 105 followed by a market buy: the system first monitors the last traded price and attempts submission only when it reaches or exceeds 105; the final execution price depends on quotes available then.
The added function is to set the time at which order execution begins separately from the price the order can accept.
How do trigger orders relate to take-profit and stop-loss orders?
A trigger order describes the mechanism of submitting an order after a condition is met. Stop-loss and take-profit orders describe uses of that mechanism for exiting holdings. A stop-loss usually triggers when the price moves adversely to a specified level; a take-profit triggers when it reaches a favorable target.
Triggers can also open a new position; when used to close, they reduce or end an existing one. Whether an order is attached to a position or restricted to reducing it depends on the actual product settings, not merely on the name “trigger order” or “take-profit/stop-loss.”
What happens to funds and orders while waiting for the trigger?
Waiting for a trigger does not mean funds have been reserved for execution. For example, OKX standalone trigger orders do not freeze margin or positions when set; sufficient available funds or position quantity are still needed at triggering. Margin is collateral for leveraged trading; see margin for how it is allocated and released.
Untriggered instructions can usually be canceled; whether they can be modified and how long they remain valid depend on the product. Orders already submitted after triggering follow their own rules; canceling unfilled quantities does not reverse completed trades.
Related terms
Explore stop-loss orders, take-profit orders, trailing stops and slippage, or return to the crypto glossary.
