What is GTT Order (Good Till Triggered)

What comes to mind when you think of a stock market trader or investor? Is it someone who is glued to their computer screens all day keeping track of every share price change, ready to pounce on the next big opportunity?

This does not have to be the case thanks to the advancements in the stock market with one of them being GTT (Good Till Triggered). This is a term that many of us may have come across on our trading apps and in this article we will understand what GTT means and also how you can use it to make your investment and trading journey all the more convenient. Keep reading to find out!

What is a GTT Order? 

One of the most important factors when it comes to investing or trading that bothers investors is the price at which they buy a stock. Investors may come across a fundamentally strong stock with amazing potential but more often than not it may be trading at a price that is not as lucrative as the stock itself. 

The investor can now keep monitoring the stock daily or simply give up and buy the stock at its current market price. But these need not be the only options available to investors. 

The GTT order feature helps you place orders at your desired price without the restrictions of any time-bound limitations. A normal order that you place comes with these time-bound limitations. If the stock does not reach the desired buy price that you have set, then your order stands canceled for that day. You would now have to place the order once again the following day and this would continue until the stock reaches your desired buy price. 

So as the name suggests a GTT trade remains good and expires only once the trigger conditions are met and the orders are placed.

How does a GTT order work? 

Now that you understand what a GTT order is, let’s understand how it works. GTT orders are triggered only when the specified trigger conditions are met and only then are they sent to the exchange for execution. 

As these orders are not sent to the exchange, the margins that you have are made available for your other trading and investment purposes until the trigger conditions are met. You are also allowed to modify or cancel your GTT orders until the conditions are triggered. Click here to read more about how you can place a GTT order on Rupeezy with ease. 

But wait, now that you’ve understood what a GTT order is and how it works, let’s understand how you can use them better by understanding their types. 

What are the different types of a GTT Order? 

As you must have understood, a GTT order requires a trigger condition for its execution. Now we can categorise these into 2 types based on the conditions that we are allowed to set. 

1. Single GTT Order

You must have already understood this type of GTT order from our discussion above but let’s understand it better with an example. 

Let’s assume that you have bought shares of SBI at Rs. 650 with the goal of selling them when the price touches Rs. 750. You can conveniently set a GTT order by setting the trigger condition to sell the shares with a limit price of Rs. 750. 

Here you will have the option of placing your order at the Limit Price (GTT-L) or the market price (GTT-M). 

2. OCO (One Cancels Other) GTT Order

As the name suggests a One Cancels Other (OCO) GTT Order helps you set two trigger conditions, one that pertains to the stop loss and one condition for the target price that you want to achieve.

Here if either one of the conditions is met the order gets placed as the other condition automatically gets cancelled. Let’s understand this better with the help of an example.

Let’s assume that you have bought shares of SBI at a price of Rs. 650 with the goal that you will sell the shares once they hit the target of Rs. 800. However here you may also suffer the possibility of a loss if the stock starts to perform poorly in the markets. The OCO GTT order allows you to also set a stop loss along with the target and accordingly, you set a stop loss at Rs. 600. Here if the price meets either of the conditions or triggers set, the order is placed. 

If the price touches Rs. 800, the sell order is placed for you to book your profit and if the price touches Rs. 600, the stop loss is triggered and a sell order is placed for you, minimising your loss. 

What are the features of a GTT with Rupeezy? 

Rupeezy allows you to place GTT orders and to find out more about how you can place GTT orders on the Rupeezy App. Here are the features made available to you on a GTT order with Rupeezy. 

• GTT orders can be placed for F&O, equity and the MCX segments

• GTT orders are valid for 365 days. 

• GTT orders can be placed for intraday, PayLater and Delivery order types. 

• GTT orders can be placed at a Limit or Market Price. 

• GTT orders can be modified or cancelled anytime till triggered. 

• Margins are not required and are not affected at the time of setting the trigger condition. It is important to note if the required margin is not present when the trigger condition is met then the order is rejected. 

What are the benefits of using GTT orders? 

Here are the benefits that you can avail by using the GTT feature:

• GTT orders help you automate your trading and investment strategy. These orders are helpful for investors who do not want to or cannot monitor the markets every day. 

• Market volatility concerns us all, but GTT orders not only allow you to quickly book profits but at the same time they also protect you from any downside thanks to stop loss. 

• Markets change every day and more often than not our goals change with the market conditions. You can modify or cancel your GTT Orders anytime before execution. 

• There are No additional charges for GTT orders. 

Try GTT Order in Rupeezy

What is the difference between a GTT+OCO and a Bracket Order? 

A GTT+OCO order may seem similar to a bracket order at first glance. Here the differentiating factor lies in the role of margins. When it comes to bracket orders, the order is placed with the exchange so the required margin must be present at the time of creation of a bracket order. On the other hand, when you place a GTT+OCO order the system does not check the availability of margins as the actual order is not placed with the exchange. The availability of margins in GTT orders is only checked after any of the trigger conditions are met. 

In Closing

The GTT order feature empowers traders and investors to set up specific conditions for the execution of their trades without having to monitor the markets constantly. However it is important to ensure timely monitoring and modification of these GTT orders as once set, the order lasts for 365 days. These GTT orders are executed only when the trigger conditions are met giving traders and investors better control of their time. Let us know what you think of GTT orders and if you’ve made use of GTT orders in the comments below. Happy Trading!

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