What Is Trigger Price In Upstox?

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Trigger price in Upstox, as the name suggests, pre-set price on a buy or sell order in trading. The order here is a special order such as a “stop-loss order”, a “take-profit order”, “bracket order” and a “cover order”.

If you are new to Upstox or even stock trading for that matter, these terms may seem overwhelming. Know what is trigger price in Upstox. Dive In!

Upstox is a well-known discount broker in India and offers trades in NSE, BSE, and MCX. Some special order types available on the platform are – limit order, stop-loss order, stop-loss limit order, stop-loss market order, cover order, bracket order, OCO order, etc.

Once you have opened a Upstox free demat account, it’s good to know about Trigger price in upstox. Let’s jump into the discussion here.

All these order types involve setting up a trigger price to either maximize profits or minimize losses.

Trigger Price in Upstox Means

The trigger price in Upstox is a condition that you add on a special “buy” or “sell” order. In simple words, the trigger price is the price/amount which when met/achieved, shall automatically place/execute your order.

Trigger order plays a very significant role in the special order of Upstox. Here in this article, there is a detailed review of the different order types and their respective trigger price.

Grab the best information by moving step-by-step through each order type.

Upstox Trigger Price In Limit Order

A limit order is a “buy” or “sell” order at a specified price. Here, a “trigger price” is set to have control over trades/orders.

In a “buy” limit order, the trigger price is set at a lower rate while for “sell” limit orders, the same is set at a higher rate.

For example: If you intend to buy/purchase a stock whose current price is ₹100, you can set the trigger price at ₹80. Whenever the price of that respective stock drops from ₹100 to ₹80, a “buy limit order” will automatically be placed.

Similarly, if you wish to “sell” a scrip whose current price is ₹100, you can set the trigger price at ₹120. Whenever this price is met, you “sell limit order” shall automatically be placed.

Upstox Trigger Price In Stop Loss Order

Stop-loss orders can be both “buy” or “sell” orders and limit the probable losses of the trader. In simple words, the stop-loss trigger is the maximum amount of loss an investor is ready to bear on a scrip.

For example: If you intend to buy a stock worth ₹100, you can set the “stop-loss trigger price” as ₹5. This means that you are ready to bear a maximum loss of ₹5 on your order. As and when the price of the scrip reaches ₹105, your “stop-loss buy” order will be placed immediately.

In case you wish to “sell” a scrip that you purchased at ₹100, you can set a “stop-loss trigger” of ₹3. Hence, you are willing to bear a loss of maximum ₹3 while selling. Therefore, when the scrip’s price will reach ₹97, your “stop-loss sell” order will be placed immediately.

Upstox Trigger Price In Stop Loss Limit Order

This type of order is a stop-loss limit order at a predefined limit price. This means that you need to specify two trigger prices here – “a stop loss trigger price” and “a limit trigger price”. These orders can be placed when your intended market forecast went wrong.

Here, the limit price must be greater than or equal to the stop-loss trigger price for buy order while it should be less than or equal to the trigger price for the sell order.

Upstox Trigger Price In Stop Loss Market Order

As the name suggests, this order is a stop-loss order that gets converted into a market order once the “stop-loss” trigger price is met.

This means that once the scrip reaches the stop-loss price the order will be executed at the existing market rate. The order can be both “buy” as well “sell”.

For example: You buy a stock for ₹100 and expect it to rise. You had set the stop-loss trigger of ₹3. Unfortunately, the stock declines and reaches the stop-loss price of ₹97. At this point, your sell order will be executed at the current market rate, thereby limiting your total losses to ₹3 (₹100-₹97).

Upstox Trigger Price In Cover Order

Cover order includes 2 different orders namely – a limit/market order and a stop-loss market order. In simple words, it is a two-legged order that aims at minimizing losses and protecting the trader from unexpected market movements.

Cover orders can be placed across various segments like – equity, derivatives, commodity, currency, etc. The second leg of this order is activated only when the first leg is executed. For this, you need to set the “limit price” and the “stop-loss trigger price”

If the limit price is reached, the limit order will be executed which, in turn, will activate the stop-loss order. Now, if the share’s price hits the “stop-loss trigger price”, your position will be automatically squared-off.

Since cover orders come under Intraday Trading, in case your first leg, i.e. the limit order is not executed before the market closure, the system will cancel your order at the intraday square-off time.

Alternatively, if the first leg is executed but the second leg (stop-loss order) is not, your open position will be auto squared-off at the existing market rate.

In simple words, the execution of the limit order activates your stop-loss order. If your stock does not hit the “stop-loss trigger price” before the market closure, your order will be squared off at the intraday square-off time which is 3:15 pm in Upstox.

Upstox Trigger Price In Bracket / OCO Order

One Cancels the Other (OCO) is a bracket order that limits losses and ensures profit at the same time. It is a three-legged order and comprises of – a position initiation order, a square-off/take profit order, and a stop-loss order in one single order.

As the name, OCO suggests, the execution of any two orders cancels the third one. These orders are intraday ones with a fixed target price.

Assume that you placed an initial “buy” order at ₹100 and set the “square-off trigger price” at ₹10. Since you have purchased, squaring off will involve “selling” which shall turn out profitable only when the square-off/take profit price hits ₹110.

Now, you have set your “stop-loss trigger price” at ₹5 with a trailing stop-loss value of ₹1. This simply implies that your loss may trail up or down with every time the price changes by ₹1.

The initial positioning order (“buy” order in this case) will be placed first. The other 2 legs shall be placed subsequently.

Now, if the “square off trigger price” (₹110) hits first, the square-off order will be activated. This will automatically cancel the stop-loss order.

Likewise, if the stop-loss price (₹95) hits first, the stop-loss order shall be executed thereby canceling the take profit/square-off one.

Conclusion

Above describe the trigger price in different Upstox order types with the clear example in each type. This would help you to do trade and set buy or sell orders carefully.

So make the best use of the information given above and start making money now.

Hope this detailed explanation helped you understand Upstox’s trigger price well. Happy investing.

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