New Conditional Order Type Tutorial 2 : Trigger Order

Available for Hong Kong and US stocks

Trigger order is a type of conditional order that includes up trigger order and down trigger order. When a specific price (the “trigger price”) is met, a buy or a sell order will be automatically placed. This allows members to automate their trading strategies and react quickly to market events without constant monitoring. This order type supports both limit and market order. Below are some of the possible scenarios to consider using the trigger order.

Scenario 1: Suppose you want to automate the buy of 100 shares of a stock if the nominal price drops from $50 to $45 that you believe has good upside potential. Here’s how you can consider to use a Down Trigger Buy Market Order in this example:

Assuming the nominal price now is $50. You can consider setting the “Trigger Price” at $45 to Buy 100 “ Quantity” at market price. A Buy market order will automatically be placed if the nominal price drops to $45 or below. This allows you to execute a buy order if the stock price drops to the entry point you want to buy at.

Scenario 2:

Suppose you bought 100 shares of a stock at $50 and want to automate the sale if the nominal price rises to $55 to capture upside to lock in the profit at $54.Here’s how you can consider to use an Up Trigger Sell Limit Order in this example:

Assuming the nominal price now is $50. You can consider to set limit price at $54 with the trigger price at $55, if the nominal price of the stock hits $55 or above, the up trigger sell limit order will be automatically placed to the market at $54, allowing you to quickly lock in profits

Notes: 

1. Up trigger market orders do not support buy orders.
2. If you place a market order as one of the trigger orders, they do not guarantee execution at a specific price. They may fill at a price far better or worse than the current price. Your account may result in having insufficient funds to settle the market order and may result in a negative cash balance. 

More detailed information is available in the FAQ “What is a conditional order” section for your reference.

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