How does a trigger price work in the context of digital currencies?

3 answers

• Dec 18, 2021 · 3 years ago
  A trigger price in the context of digital currencies is a predetermined price level set by a trader that, when reached, activates a specific action. This action could be placing a buy or sell order, setting a stop-loss order, or executing a trade. The trigger price is typically set based on technical analysis indicators or market conditions. When the trigger price is reached, it triggers the specified action automatically, without the trader needing to manually execute the order. Traders can use trigger prices to automate their trading strategies and take advantage of market movements even when they are not actively monitoring the market.
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• Dec 18, 2021 · 3 years ago
  In simple terms, a trigger price is like a threshold that, when crossed, triggers a predefined action. For example, if a trader sets a trigger price to sell a certain digital currency at $10,000, once the price reaches or goes above $10,000, the sell order will be automatically executed. Trigger prices are useful for traders who want to take advantage of specific price levels without constantly monitoring the market. They can be used to automate trading strategies and minimize emotional decision-making.
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• Dec 18, 2021 · 3 years ago
  At BYDFi, we understand the importance of trigger prices in digital currency trading. Traders can set trigger prices to enter or exit positions based on their trading strategies. When the trigger price is reached, BYDFi's trading platform automatically executes the specified action, providing traders with a seamless and efficient trading experience. Trigger prices can be a valuable tool for traders to manage risk, capture profits, and optimize their trading strategies.
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