Essential tools for smart traders: An in-depth understanding of trigger orders and automatic execution mechanisms

In the fast-changing financial markets, many investors face a common dilemma—being unable to monitor the market at all times, while also worrying about missing trading opportunities or increasing losses. This is precisely why Trigger Orders have emerged. They allow traders to set specific price conditions in advance, and when the market price reaches that level, the system automatically converts the order into a market order for execution, eliminating the need for manual intervention.

Core Differences Between Trigger Orders and Traditional Pending Orders

A Trigger Order is essentially a conditional order. Investors can lock in target prices for buying or selling in advance, and once the market hits that price, the system immediately initiates the trading process. Unlike limit orders, trigger orders convert into market orders once triggered, so the final transaction price may differ slightly from the preset price—this is a key point investors must understand.

Investors typically use trigger orders with two main goals: first, to implement a low-buy-high-sell strategy without constantly monitoring candlestick charts; second, to set pre-emptive stop-loss mechanisms to ensure risks stay within manageable limits and prevent losses from exceeding expectations.

Why Choose Mitrade for Trigger Order Trading

Mitrade was established in Melbourne, Australia, in 2011, and has become a diversified fintech platform. The platform offers a wide range of Contract for Difference (CFD) products, covering forex, stocks, indices, commodities, and cryptocurrencies, with hundreds of trading instruments.

Key advantages of the platform include:

• Comprehensive Regulation: Recognized by ASIC, CIMA, FSC, and other regulatory bodies
• Low Entry Barrier: Minimum deposit of only $50
• Flexible Leverage: Offers leverage options from 1-200x, adjustable according to different products
• Multiple Funding Options: Supports local bank transfers, credit cards, e-wallets, etc., with no fees
• Fund Security: Uses segregated client funds held in trust, with negative balance protection

Mitrade’s app features a clean and intuitive design. After logging in, tap on ‘My’ to switch between demo and live accounts. Beginners can familiarize themselves with the trading process and test strategies on a demo account before progressing to real trading. The platform not only provides market information for various trading instruments but also offers trading strategy suggestions and technical analysis tools to meet the needs of both beginners and experienced traders.

Practical Guide to Using Trigger Orders

How to Place Trigger Orders on Mitrade

Executing trigger order trades involves four steps:

Step 1: Log in to the Mitrade trading platform

Step 2: Select the target trading instrument (e.g., Tesla stock)

Step 3: Click ‘Buy’ to enter the trading interface

Step 4: On the trading page, configure the following parameters in detail:

• Trigger price (target price level)
• Trade direction (long or short)
• Leverage (if needed)
• Trade volume
• Take profit target price
• Stop loss protection price
• Dynamic trailing settings (if enabled)

After completing all settings, click ‘Set Pending Order,’ and the trigger order will be successfully submitted.

Managing and Modifying Orders

All submitted orders can be viewed in the ‘Positions’ → ‘Pending Orders’ section via the feature list below. On this page, investors can monitor order status in real-time, modify trading conditions, or cancel orders if necessary. If an order has been executed, it will automatically move to the ‘Open Positions’ section.

Maximize Profits with Trailing Stop Loss

In addition to fixed stop-loss prices, Mitrade offers a Trailing Stop Loss feature, which is a powerful tool for advanced traders. Traditional stop-loss mechanisms are fixed once set, but trailing stop loss automatically adjusts upward as the market price rises.

For example: Suppose you enter at $160, set a $10 retracement as the stop-loss, with an initial stop-loss at $150. If the stock price then rises to $180, keeping the stop-loss at $150 would seem unreasonable. Enabling trailing stop loss will automatically set the stop-loss to the higher of the current peak or entry price minus $10, thus protecting previous gains while allowing further upward movement.

To activate this feature, simply enable ‘Trailing Stop Loss’ when placing an order, set the retracement amount, and submit the pending order. If you are dissatisfied with the parameters, you can always go to ‘Positions’ → ‘Pending Orders’ to review and adjust the conditions.

Important Risk Tips Before Trading

Leverage Cost Consideration: Mitrade does not charge trading commissions, but using leverage incurs overnight interest costs. The longer the position is held, the higher the interest burden. Therefore, leverage is not recommended for long-term investment strategies.

Slippage Risk: Since trigger orders convert into market orders only after the price is triggered, products with low liquidity are prone to slippage (buying at a higher price than expected or selling at a lower price). It is advisable to prioritize trading high-volume, highly liquid instruments to reduce this risk.

Trading Hours Variations: Different products have different trading hours. Cryptocurrencies trade 24/7, while stocks are limited to exchange hours. Investors must pay attention to these differences to avoid missing trading windows.