What is a trigger price in Kraken futures?

On Kraken Futures, a trigger price activates conditional orders like stop-loss or take-profit when the market hits your set level—automating trades without constant monitoring. (154 characters)

Jul 27, 2025 at 06:28 pm

Understanding Trigger Price in Kraken Futures

A trigger price in Kraken Futures refers to the specific market price at which a conditional order—such as a stop-loss, take-profit, or trailing stop—becomes active and executes as a market or limit order. This price does not initiate the trade immediately; instead, it acts as a signal that the market has reached a predefined level set by the trader. Once the asset’s price hits or surpasses the trigger price, the conditional order transforms into a live order on the order book. This mechanism allows traders to automate risk management and profit-taking strategies without constant monitoring.

Differentiating Trigger Price from Execution Price

It’s essential to distinguish between the trigger price and the execution price. The trigger price is the threshold that activates the order, while the execution price is where the order actually fills once live. In fast-moving markets, slippage can cause the execution price to differ from the trigger price. For example, if a trader sets a stop-loss with a trigger price at $50,000 for a Bitcoin futures contract, the order activates when BTC/USD reaches $50,000. However, due to volatility, the actual fill might occur at $49,950 or $50,050 depending on liquidity and order type.

How to Set a Trigger Price on Kraken Futures

To configure a trigger price on Kraken Futures, follow these steps:

• Navigate to the “Futures” trading interface on Kraken.
• Select the contract you wish to trade (e.g., BTC/USD quarterly future).
• Click on “Order Type” and choose “Stop-Loss,” “Take-Profit,” or “Trailing Stop.”
• Enter your desired trigger price in the designated field—not the order price field.
• Specify whether the order should become a market or limit order upon triggering.
• Input the quantity and confirm the order using two-factor authentication (2FA).
  

  This process ensures precise control over entry and exit conditions. Mistakenly entering the trigger price in the “Order Price” field will result in an immediate market execution if the price matches, which is not the intended behavior for conditional orders.

  Common Use Cases for Trigger Prices

  
  Traders use trigger prices to automate strategies that would otherwise require manual intervention:
• Stop-Loss Orders: A long position in ETH-PERP with a trigger price at $2,800 helps limit losses if the market drops unexpectedly.
• Take-Profit Orders: A short position in SOL/USD with a trigger at $135 locks in gains when the price declines to that level.
• Trailing Stops: A trailing stop with a 3% offset uses a dynamic trigger price that adjusts as the market moves favorably, protecting profits while allowing room for volatility.
  

  Each scenario relies on the trigger price to activate the order at the right moment, minimizing emotional trading decisions and enhancing discipline.

  Managing Risks with Trigger Prices

  
  While trigger prices offer automation benefits, they carry inherent risks:
• Slippage: In low-liquidity markets, the execution price may deviate significantly from the trigger price, especially with market orders.
• False Triggers: Sudden price spikes or flash crashes can activate orders prematurely. Using limit orders instead of market orders post-trigger can mitigate this risk.
• Incorrect Placement: Setting a trigger too close to the current price may result in premature execution during normal market fluctuations. Traders should analyze recent volatility and support/resistance levels before choosing a trigger price.
  

  Kraken’s advanced order interface allows users to preview how their trigger price interacts with the current order book, helping avoid unintended outcomes.

  FAQs

  What happens if the market never reaches my trigger price?
  
  If the asset price does not hit or cross the trigger price, the conditional order remains inactive and does not execute. It will stay in your open orders tab until canceled or until the contract expires.

  Can I modify a trigger price after placing the order?
  
  Yes. On Kraken Futures, you can edit the trigger price of a stop-loss, take-profit, or trailing stop order as long as it hasn’t been triggered. Click on the order in your “Open Orders” section, select “Edit,” and update the trigger price field accordingly.

  Is the trigger price visible to other market participants?
  
  No. Trigger prices for conditional orders are private and not displayed on the public order book. Only Kraken’s system holds this information until the condition is met.

  Why did my order execute at a different price than my trigger?
  
  This is typically due to slippage. When the trigger condition is met, the order becomes active. If it’s a market order, it fills at the best available price, which may differ from the trigger due to rapid price movement or low liquidity. To reduce this effect, use a limit order with a specified execution price after the trigger.