What is a trigger price?
Trigger price is the price at which your stop-loss buy or sell order becomes active for execution and is submitted to the exchange. In other words, once the stock price hits the "trigger price" set by you, your stop-loss buy or sell order is sent to the exchange for execution.
After the stop-loss order has been triggered, your shares, ETF or option contract will be bought or sold at the limit price set by you for SL orders or at the market rate for SLM orders.
The stop loss (SL) order has two price components to it:
- The stop loss price, also called the SL Limit Price.
- The stop loss trigger price, known as the Trigger Price.
To make your trading experience easier, you can set the trigger price in both value and in percentage on Arihant Plus.