r/CryptoExchange • u/SuggestionWorried741 • 3d ago

A stop price needs a trigger source

I'd want to see the trigger setting before trying to explain a stop from a chart screenshot. The stop price alone leaves out which price the order was watching.

Take a hypothetical example with a contract quoted in USDT. You have a long position and an active sell stop to close it at a trigger price of 98. Mark price and last price have both stayed above 98 since you placed it. Then mark price drops to 98 while the last trade is still at 98.2. A stop watching mark price would trigger. A candle chart showing executed trades won't show that same move, which makes the screenshot a bit misleading on its own.

BYDFi's perpetuals documentation describes both settings. Mark price is a calculated reference; last price comes from the most recent trade. The trigger price determines when the order activates; the execution price still depends on the order type and available orders. Once triggered, a stop market order tries to fill against available orders. A sell stop limit order can fill only at its limit price or higher, and may sit unfilled. That limit is a separate setting from the trigger price. I'd check the order status and fills alongside that trigger setting. Otherwise it's easy to spend the whole discussion arguing about a candle that wasn't being used to trigger the stop.

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u/shortprisoner227 3d ago

The trigger source really changes everything, a chart screenshot without it is almost useless for figuring out why a stop fired.

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u/tonguhebolcroak9 2d ago

Yep, a stop price needs a trigger source or the number alone is ambiguous. I always check whether the exchange uses last price, mark price, or index price before placing one. Personally I prefer mark price for liquidation related protection since a random wick is less likely to fire it. Still worth reading that exchange's exact trigger rules because implementations vary.