# What does "Trigger" mean?

<div align="left"><figure><img src="https://4048502929-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2F7muPKbcjseMnww8CSSyX%2Fuploads%2Fejmv3JoZYtuaIr9oabdC%2FScreenshot%202024-11-08%20at%2014.36.55.png?alt=media&#x26;token=66798182-8f20-4fdf-b5e7-3cdb0d515f05" alt="" width="187"><figcaption></figcaption></figure></div>

In the context of **DNT (Double No Touch) Options** trading for crypto, the term **"trigger"** typically refers to the specific price level or event that **activates** or **initiates** a particular action within the options contract. This action is what causes the option to either pay out or result in a loss, depending on whether the price reaches or touches the predefined levels.

## Here's how "trigger" works in DNT Options:

If the price exceeds a specific level (the positive and negative values below the trigger box), it could trigger a loss for the trade.

In other words, when the price "touches" or "breaks" through the trigger level, the trade outcome is determined, and the option expires.

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## What do the index numbers mean?

<div align="left"><figure><img src="https://4048502929-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2F7muPKbcjseMnww8CSSyX%2Fuploads%2Fejmv3JoZYtuaIr9oabdC%2FScreenshot%202024-11-08%20at%2014.36.55.png?alt=media&#x26;token=66798182-8f20-4fdf-b5e7-3cdb0d515f05" alt="" width="187"><figcaption></figcaption></figure></div>

Using the above screenshot as an example, the terms **"index -40.0"** and **"index +40.0"** in the **"trigger"** section refer to specific price levels or **price movements** relative to the current market price of the cryptocurrency (such as Bitcoin or Ethereum) that act as triggers for the option.

Let’s break it down:

### **"Index -40.0" and "Index +40.0"**

* **"Index"** in this case likely refers to the current price of the cryptocurrency **relative to a baseline value** (often the **current price**).
* **"Index -40.0"** means the **trigger level is 40 points below** the current price.
* **"Index +40.0"** means the **trigger level is 40 points above** the current price.

### Example:

If Bitcoin is currently priced at **$30,000**, here's how the **"index"** values would work:

* **"Index -40.0"**: This means the price level is set **40 points lower** than the current price, or **$29,960** (30,000 - 40).
* **"Index +40.0"**: This means the price level is set **40 points higher** than the current price, or **$30,040** (30,000 + 40).

These levels become important in the context of **Double No Touch (DNT) Options**. With a **DNT Option**, you are betting that the price **won’t touch** or **reach** these trigger levels (**-40.0** or **+40.0**) within a certain time frame. If the price touches or exceeds either of these levels, the option would trigger a **loss** for the position.

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## Summary:

* **"Trigger"** refers to the price level or event that activates a specific action in the trade (either a payout or a loss).
* In **DNT options**, a trigger is the price point where, if reached, the option either becomes invalid or results in a loss.
* Understanding triggers helps you track when your option might expire or activate based on the price movement of the asset (crypto in this case).