I happened to see someone asking about the difference between trigger price and limit price, which is indeed a common point of confusion for many new traders. Let me explain briefly.

Actually, these two concepts often appear together in futures or derivatives trading, but their functions are completely different. The trigger price is the activation condition, meaning you set a certain price level; when the market price reaches this level, your order will be triggered. For example, if Bitcoin is currently over 70,000 USD and you expect it to fall to 65,000 USD, you can set the trigger price at 65,000. Once the price hits this point, the system will activate your order.

However, this does not mean the order will be executed at 65,000 USD. The actual execution price depends on the limit price you set, which is your target transaction price. If you want to buy at 65,000 USD, you set the limit price to 65,000. Once triggered, the order will be executed at your desired price. If the market price drops below 65,000, you might get a better price, but it will not exceed your limit price.

To summarize simply: the trigger price is responsible for activating the order, and the limit price determines the final transaction price. This conditional limit order setup is especially suitable for traders who want to place orders only under certain market conditions, such as waiting for a support or resistance level to appear before executing. Many people initially confuse these two, but once you understand this logic, it becomes clear.