Welcome to this exclusive article on Good Till Triggered Orders (GTT) offered by Zerodha. Zerodha recently launched the GTT orders feature and you may have noticed this on your Kite app. Many of us may not be able to track stock prices continuously, when we go for jobs. GTT order feature comes very handy for such people.
Good Till Triggered Orders (GTT) are orders that are valid until triggered. These orders are most commonly used to place stoploss and target orders for the long term. If we place a normal buy or sell order, the order is canceled by the end of the day, if the order is not executed. But GTT order will be active until trigger condition is met. The trigger will be valid for 1 year. Once the price meets the trigger price, GTT order is executed. You should make sure you have sufficient funds in your account.
Trigger Types in GTT Order
There are two types of triggers available in GTT Order.
- OCO (One Cancels the Other) Trigger
- Single Trigger
OCO Trigger
OCO trigger can be used to place a target and a stop loss order. For example, you bought 100 Infosys shares at a price of 700. You want to sell them with a target price of 800 and stoploss of 670. When you place a GTT order with OCO trigger, you place two sell orders. One at 800, and another at a 670. When any of the orders are executed the other order is cancelled.
Single Trigger
Single Trigger is fired if market price breaches the trigger price. For example, you bought 100 Infosys shares at a price of 700. You want to sell them with a target price of 800. When you place a GTT order with Single trigger, your order will be placed when the Infosys price reaches or exceeds 800.
How to place GTT Order in Zerodha Kite?
In the Zerodha Kite web market watch section, hover over the stock you wish to buy and click on the context menu. There you will find Create GTT option as shown in the picture below.
How to place GTT Order in Zerodha Kite Mobile App?
In the Zerodha Kite Mobile App, click on the scrip that you wish to buy and click on Create GTT on right. For more clarity refer below.
Good Till Triggered Orders - Buy Orders
GTT buy orders can be used to create trigger orders to buy a stock. In the image below, the share price of Infosys is 785.75. If you wish to buy Infosys when the price is 700, you can place a GTT buy order with the price 700 and trigger price at 701. This order is valid for up to 1 year. Within 1 year, whenever the price of Infosys is 701, a buy order will be placed with price at 700. The key benefit of this order is that you do not need to track the price of the stock on a regular basis in order to buy a stock.
Good Till Triggered Orders - Sell Orders
GTT Sell Orders can be used to exit the current position. In GTT Sell Orders, you can either use the target order (Single Trigger) or both the target order and the stoploss order where the one cancels the other (OCO Trigger).
Single Trigger
Let us assume that you have already bought the shares of Infosys. In the image shown below, the share price of Infosys is 785.70. If you wish to sell Infosys when the price is 799, you can place a GTT sell order with the price 799 and trigger price at 799. This order is valid for up to 1 year. Within 1 year, whenever the price of Infosys is 799, a sell order will be placed with price at 799. So, you need not track the price of the stock on a regular basis in order to sell the stock.
OCO Trigger (One Cancels the Other)
Let us assume that you have already bought the shares of Infosys. In the image shown below, the share price of Infosys is 785. Whether you want to sell Infosys at a price of 800 or a stop loss of 700, you can place a GTT sell order with an OCO trigger. This order will be valid for up to 1 year. Within 1 year, if the price of Infosys breaches 800, the sell order will be executed and the stoploss order will be cancelled. Otherwise, if the price of Infosys breaches 700, the stoploss order will be executed and the target order will be cancelled.
Using Percentages to Set Triggers
As shown in the below image, you can fire the Target Price and Stoploss GTT triggers at any desired percentage points from the Last Traded Price. You can simply change the % of LTP below Stoploss and Trigger Price.
How to manage Good Till Triggered Orders?
You can manage GTT orders in the Orders tab of the Kite portal. You find two tabs, one for Orders and another for GTT orders.
Good Till Triggered Orders - More Information
- Good Till Triggered Orders are valid for 1 year. If the order doesn’t get executed in 1 year, it gets cancelled.
- If a GTT order fired is not filled at the exchange, you will need to re-place the order again.
- Whenever there is a corporate action, like bonus, dividend (if greater than 5 % of the market value), stock split, etc., the Good Till Triggered order for the corresponding stocks will be cancelled before the ex-date. You need to re-place GTT order after the corporate action.
- All orders will be triggered and placed only during market hours.
- Good Till Orders will be filled if you have enough funds for buys and if you have enough stock in your demat for sells.
- Good Till Triggered orders are available for equity delivery (CNC) trades on stocks listed on both NSE and BSE.
- A maximum of 50 active GTT orders can be placed at a time on one account.
- Good Till Triggered Orders are absolutely free of charge.