What is GTT Order (Good Till Triggered)?

What is GTT (Good Till Triggered)?

GTT's full form in the stock market is Good Till Triggered. It allows investors to place active orders that remain until a specific price-based trigger condition is met. With a GTT order, the investors specify the trigger price and the limit or market price to execute the order. Once the trigger price is reached, the order is activated and sent to the market for execution at the specified limit or the prevailing market price. 

How Does GTT Help You?

GTT orders benefit investors who want to automate their trading strategies and take advantage of specific price movements without continuously monitoring the market. They provide flexibility and convenience by allowing investors to set up and customise their orders based on their precise trading criteria. 

Here’s another GTT order example.
Suppose a stock is priced at Rs 250, and you want to sell your holdings at Rs 275. You can place a GTT order at the latter price. Once the stock reaches Rs 275, your holdings will be sold automatically at the triggered price. 

Let us take Hindustan Unilever Ltd for understanding the GTT order example. It is currently trading at Rs 2612. Suppose you want to invest in HUL at a lower rate of Rs 2600. You can place a GTT order to buy it at the latter rate. Whenever the stock price falls to your desired rate, it will trigger your GTT order. Thus, it will enable you to buy the stock. 

Why Use GTT?

GTT orders can be beneficial if you are an avid investor in the stock market. If you already have stocks in your demat account, such orders can help you sell all or some of them at a specific price. Once you sell, you can place a buy order for the same stocks with a lower GTT price to repurchase them, allowing you to realise profits without constantly monitoring the prices. 

Is It Applicable On All Stocks?

If a stockbroker offers to place GTT orders, you can use the feature to trade in every listed stock. However, the orders only apply for scrips listed on NSE, BSE cash and NSE F&O. The validity for such orders is 365 days from the day of order execution. 

What happens when the GTT is triggered?

Depending on the GTT price and the nature of the order (buy or sell), it is automatically placed once the set GTT price is triggered. It has a one-time validity and can not be changed or adjusted once the order is triggered. 

How many GTT orders can I place at once?

Most stockbrokers have different terms when it comes to placing a GTT order. However, SEBI has set guidelines for setting a maximum of 50 GTT orders. 

What are the types of GTT?

There are two types of GTT orders. 

●    Single: In this type of GTT order, only one entry price is required detailing the order quantity and price. 

●    One Cancels Other (OCO): It allows investors to place two orders simultaneously (two entry prices), with the condition that if one order is executed, the other order is automatically cancelled.
 

What are the conditions for the Entry Price?

These conditions are required for the entry price. 

●    It is mandatory to have a minimum gap of 0.5% between the entry price and the last traded price. 
●    If you place an OCO GTT order with a standard one, the minimum price gap should be 1%. 
 

Can I modify and delete my GTT orders?

In most cases, you can modify or delete your GTT orders in the Indian share market. However, it depends on the specific features and functionalities offered by your broker or trading platform.