The difference between your execution price and trigger price depends on whether the order converts into a market order or a limit order after hitting the trigger price.
Triggering a Market Order:
- When the trigger price is reached, if you’ve selected a market order, it executes immediately at the best available price.
- Since market orders focus on speed, factors like market volatility or low liquidity lead to a difference between the trigger and execution prices.
Triggering a Limit Order:
- If the order is set to convert into a limit order upon reaching the trigger price, it executes only at the specified limit price or better.
- While this gives price control, the order might not execute if the market price moves away from your limit.
Market Order guarantees execution but can result in price variations due to market conditions. Limit Order controls execution price but may not fill if the price moves away from your limit.