> For the complete documentation index, see [llms.txt](https://docs.coinlocally.com/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.coinlocally.com/perpetual-contracts/functions/conditional-order.md).

# Conditional Order

### **Overview**

A **Conditional Order**—also known as a **Trigger Order**—is an order that only becomes active once the **market reaches a specified trigger price**. Until the condition is met, the order remains inactive and does **not require any margin**.

> ⚠️ If there is **insufficient margin** in your account when the trigger condition is met, the order will **fail to execute**.

### **How It Works**

* **Trigger Price**: The price at which the order becomes active.
* **Trigger Mechanism**: The system currently uses the **latest traded price** as the condition to trigger the order.
* Once triggered, the order is **submitted** as either a **limit** or **market** order based on your selected type.

### **Types of Conditional Orders**

#### **1. Conditional Limit Order**

* Once triggered, the order is placed at your specified **limit price**.
* The order enters the order book and follows the regular behavior of limit orders.

#### **2. Conditional Market Order**

* Once triggered, the system immediately executes the order at the **best available market price**.
* Designed for speed and certainty of execution.

### **Common Use Cases**

Conditional orders are useful in various trading strategies, especially when traders want to automate actions based on specific market movements:

#### **Chase Up (Breakout Buying)**

* **Goal**: Open a position only if the price breaks above a certain resistance level.
* **Setup**: Set the **trigger price above** the current level and select **either 'Buy at market' or 'Limit'**.

#### **Close Down (Breakout Selling)**

* **Goal**: Open a short position if the price falls below a support level.
* **Setup**: Set the **trigger price below** the current level and select **Sell**.

#### **Take Profit**

* **Goal**: Automatically close a profitable position at your target price.
* **Setup**: Set the trigger price at the **Take Profit level** and configure a sell or buy order based on position direction.

#### **Stop Loss**

* **Goal**: Limit losses by closing a position if the price moves against you.
* **Setup**: Set the trigger price at the **Stop Loss level** and configure an opposite-side order to exit the position.

### **Example: Chase Up Scenario**

**Context**:\
In November 2020, BTC was trading at $19,500. You predict that if BTC breaks $20,000, it may rapidly rise to $50,000. You want to enter the market only if that breakout occurs, but you don't want to monitor the market constantly.

**Solution**: Set a **Conditional Market Order** as follows:

* **Trigger Price**: 20,000
* **Direction**: Buy
* **Order Type**: Market
* **Quantity**: 1 BTC

#### **Execution Logic**:

Once the system detects a **latest traded price of 20,000 USD**, it **automatically submits** a **market buy order for 1 BTC**. Your position is opened almost instantly near that price, just as you planned.

This is an example of using a conditional order for **breakout entry, also known as "chasing up."** The same logic applies in reverse for **"close down"** scenarios.

### **Summary**

| Feature               | Description                                        |
| --------------------- | -------------------------------------------------- |
| **Trigger Type**      | Latest traded price                                |
| **Order Types**       | Limit or Market                                    |
| **Margin Required**   | None until triggered                               |
| **Failure Condition** | Fails if insufficient margin at trigger time       |
| **Common Uses**       | Breakout trades, Take Profit, Stop Loss automation |