Upstox is a popular online trading platform that provides trading services in stocks, commodities, currencies, and more. As a trader, you must keep an eye on the price movement of your chosen securities and decide when to buy or sell them. To make this process easier and more effective, Upstox offers various tools and features, one of which is the Trigger Price.

What is Trigger Price in Upstox?

The Trigger Price is a unique feature offered by Upstox that helps traders set a specific price level for their orders. It is also known as Stop Loss Trigger Price or Trigger Point. With this feature, traders can minimize potential losses or lock in profits by placing conditional orders.

The Trigger Price is used mainly for Stop Loss and Target Orders. Stop Loss is a technique used by traders to minimize their losses in case the market moves against them. On the other hand, Target Orders are used to lock in profits when the market moves in favor of the trader.

To understand the Trigger Price in Upstox, let's take an example. Suppose you bought 100 shares of XYZ stock at Rs. 500 per share. You believe that the stock will rise in the near future, but you also want to minimize your losses in case it goes down. You can use the Trigger Price feature to set a Stop Loss order at Rs. 480, which means that if the stock price falls to Rs. 480 or below, your shares will be sold automatically to limit your losses.

Similarly, you can also use the Trigger Price feature to set a Target Order. Suppose you bought the same 100 shares of XYZ stock at Rs. 500 per share, and you want to book your profits if the stock price reaches Rs. 550. You can set a Target Order at Rs. 550, which means that if the stock price goes up to Rs. 550 or above, your shares will be sold automatically to lock in your profits.

The Trigger Price feature in Upstox is easy to use and can be accessed through the order window. To set a Trigger Price, select the desired stock, choose the order type, and enter the Trigger Price level. You can also set the Order Quantity, Order Type, and Price, among other parameters.

Conclusion

The Trigger Price feature in Upstox is a powerful tool that allows traders to set conditional orders to minimize losses or lock in profits. This feature allows traders to manage their risk effectively and make informed trading decisions. It is important to note that the Trigger Price feature should be used with caution and after a thorough analysis of the market conditions, as setting the wrong Trigger Price can result in significant losses.

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