Trigger price refers to a specific price point set by traders to activate a trading order, such as a buy or sell order. When the market price reaches this predetermined level, the order is executed automatically, allowing traders to capitalize on price movements without needing to monitor the market continuously.For example, a trader may set a trigger price to buy a particular asset when its value dips to a desired level, anticipating potential recovery. Conversely, a sell order may be placed at a trigger price to limit losses or to secure profits when the asset reaches a target price.This mechanism is often used in conjunction with stop-loss orders and take-profit orders, helping to manage risk and enhance trading strategies. Utilizing trigger prices allows traders to respond swiftly to market fluctuations, ensuring they can make moves aligned with their investment goals.