The Good-Till-Triggered (GTT) feature will work like an order that is active until the trigger condition is met.
This trigger value will be valid for one year.
What is GTT order?
- GTT is a feature that allows you to place buy or sell orders for any stock at the market or limit price.
- You can place a GTT order and that order will have a validity of 1 year.
- For a GTT order, brokers do not charge you any sort of extra amount.
When will the Good-Till-Triggered order be executed?
- The GTT orders will be executed once the market price of the stock reaches the price that you have specified, which is also known as the trigger price.
- The order will be executed before the Good-Till-Triggered order expires.
- A Good-Till-Triggered order can only be placed with the following product criteria:
- Good-Till-Triggered orders are not for intraday product types.
- Good-Till-Triggered orders can also be placed in the derivatives segment.
- In that case, the GTT order will be executed as a carry forward type order and hence the order expiry will be as per the contract expiry date.
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Example of a GTT order:
- Let us understand a Good-Till-Triggered order with the help of an example:
- If you wish to buy 100 shares of Reliance if it reaches the price of Rs. 2650, then you will have to keep a check on the market every day.
- But with the help of Good-Till-Triggered, you just have to place the Good-Till-Triggered order simply and once the price of Reliance reaches Rs. 2650, your order will be placed and executed.
Can GTT orders be used for selling stocks in your portfolio?
- Yes, Good-Till-Triggered orders can also be used for selling shares in your portfolio.
- Here, the process is the same as buying.
- All you will have to do is to place a sell order and, once your desired price is triggered, the order will go into execution.
How to place a GTT order?
You will have to follow the simple steps laid out below in order to place a GTT order:
Step 1: First, select the stock you want to place the Good-Till-Triggered order for.
Step 2: Next, click on the stock to go to the company page.
Step 3: There, you have to tap on “Create GTT” and search for the script for which you wish to place the Good-Till-Triggered order.
Step 4: Next, you will have to enter the quantity, limit price, trigger price, or price percentage and then select the product type.
Step 5: Lastly, tap on “Create Good-Till-Triggered.”
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How to cancel or modify a GTT?
- To cancel a Good-Till-Triggered, click on the delete icon and then confirm.
- To modify a Good-Till-Triggered order, the process is similar to creating a new Good-Till-Triggered order.
Cost of GTT orders:
Good-Till-Triggered orders are always free.
Benefits of using a GTT order:
The following are the benefits of using a GTT order:
- Good-Till-Triggered orders have a lifetime validity, so you will place your orders once and then sit back and relax till the same gets executed.
- The best part is that you will not have to spend a single penny on such an order because this service is absolutely free.
- There is also no need to log in to your trading terminal because once you place the Good-Till-Triggered order, it will get triggered once it reaches its target price.
- You can also place this order to enter or exit F&O as well as from the delivery positions.
- You can also easily modify or cancel the Good-Till-Triggered orders.
Limitations of GTT orders:
The following are the main limitations of a Good-Till-Triggered order:
- This order placement is allowed only during market hours.
- It is restricted only to equity delivery trades, and intraday trades are excluded.
- Once the order gets triggered, it will move out of the Good-Till-Triggered queue and might need to be placed again if the same is not executed.
- The Good-Till-Triggered option is only available for Nifty and Bank Nifty F&O contracts.
- The sell order might get rejected or fail if the TPIN is not authorized or has expired its validity of 90 days.
- A triggered Good-Till-Triggereddoes not always mean guaranteed execution.
- Only 50 Good-Till-Triggered orders are allowed per customer.
- There is no support for the Good-Till-Triggered orders and they will have to be managed independently by the investors on their very own.
GTT order options:
The GTT order can be placed in any of the following ways:
We hope that the above blog gives you detailed knowledge of GTT and how it will work.
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