Trade Trigger

AAA

DEFINITION of 'Trade Trigger'

Any type of event that triggers a securities trade. A trade trigger is usually a market condition, such as a rise or fall in the price of an index or security. Trade triggers are used to automate certain types of trades, such as selling shares of a stock when the price reaches a certain level.

INVESTOPEDIA EXPLAINS 'Trade Trigger'

Day traders often use trade triggers in order to avoid having to constantly monitor market conditions. Trade triggers are automatic, thus freeing the trader to focus on other tasks. Most online brokers and day trading programs both teach and offer this strategy to investors.

RELATED TERMS
  1. Stock Trader

    An investor in the financial markets. Stock or equity traders ...
  2. Stock

    A type of security that signifies ownership in a corporation ...
  3. Trend

    The general direction of a market or of the price of an asset. ...
  4. Sell

    The process of liquidating an asset in exchange for cash. The ...
  5. Trader

    An individual who engages in the transfer of financial assets ...
  6. Forex Spread Betting

    A category of spread betting that involves taking a bet on the ...
Related Articles
  1. Active Trading

    Would You Profit As A Day Trader?

    Market timing is surrounded by controversy, but does it work?
  2. Trading Strategies

    Introduction To Swing Trading

    This style, between day trading and trend trading, may be a good one for beginners to try.
  3. Trading Strategies

    Day Trading Strategies For Beginners

    From picking the right type of stock to setting stop-losses, learn how to trade wisely.
  4. Active Trading

    Trade Simple, Trade Smart

    Simplicity can be a trader's best friend. Here is a simple day trading strategy which takes advantage of a stock's dynamics.
  5. Trading Strategies

    Find Turning Points With Single-Day Patterns

    On their own, single-day patterns can be unreliable, but that doesn't mean they can't be used effectively.
  6. Trading Strategies

    The 10 Worst Mistakes Beginner Traders Make

    Traders generally buy and sell securities more frequently and hold positions for much shorter periods than investors, which can result in costly mistakes.
  7. Trading Strategies

    Rise and Shine With This Pre-Market Checklist

    Your pre-market routine sets the stage for the rest of the trading day. Use this comprehensive checklist to get up to speed, ahead of the opening bell.
  8. Active Trading Fundamentals

    Minute-to-Minute Trade Signals for Today's Scalper

    Scalpers profit in the modern electronic environment by utilizing technical indicators that are custom-tuned to very small time frames.
  9. Trading Strategies

    Day's First Trade Can Serve As Support/Resistance

    The first trade of the day in liquid markets defines a narrow price level that can act as support or resistance for the entire session.
  10. Options & Futures

    Trading Using Binary Options

    Discover the securities and underlying assets you can trade using binary options in the US.

You May Also Like

Hot Definitions
  1. Command Economy

    A system where the government, rather than the free market, determines what goods should be produced, how much should be ...
  2. Prospectus

    A formal legal document, which is required by and filed with the Securities and Exchange Commission, that provides details ...
  3. Treasury Bond - T-Bond

    A marketable, fixed-interest U.S. government debt security with a maturity of more than 10 years. Treasury bonds make interest ...
  4. Weight Of Ice, Snow Or Sleet Insurance

    Financial protection against damage caused to property by winter weather specifically, damage caused if a roof caves in because ...
  5. Weather Insurance

    A type of protection against a financial loss that may be incurred because of rain, snow, storms, wind, fog, undesirable ...
  6. Portfolio Turnover

    A measure of how frequently assets within a fund are bought and sold by the managers. Portfolio turnover is calculated by ...
Trading Center