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:
When will the GTT order be executed
  • 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.

Also Check: What is a Stop Loss Trigger Price?

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.”

Also Read: How to Set a Limit in Intraday Trading?

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:

  1. 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.
  2. The best part is that you will not have to spend a single penny on such an order because this service is absolutely free.
  3. 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.
  4. You can also place this order to enter or exit F&O as well as from the delivery positions.
  5. You can also easily modify or cancel the Good-Till-Triggered orders.

Know: All About Orders in Stock Market India

Limitations of GTT orders:

The following are the main limitations of a Good-Till-Triggered order:

  1. This order placement is allowed only during market hours.
  2. It is restricted only to equity delivery trades, and intraday trades are excluded.
  3. 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.
  4. The Good-Till-Triggered option is only available for Nifty and Bank Nifty F&O contracts.
  5. The sell order might get rejected or fail if the TPIN is not authorized or has expired its validity of 90 days.
  6. A triggered Good-Till-Triggereddoes not always mean guaranteed execution.
  7. Only 50 Good-Till-Triggered orders are allowed per customer.
  8. 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:

GTT order options

Learn: 3-Step Pullback Trading Strategy

Conclusion:

We hope that the above blog gives you detailed knowledge of GTT and how it will work.

About Us:

Trading Fuel is our blog website where we give you knowledge about the stock market and intraday trading. Stay tuned with us for more such blogs.

Must Know: How Much Can We Earn in Intraday Trading?

Frequently Asked Questions (FAQs)

Answer: GTT orders are free of charge.
Answer: It is Good-Till-Triggered.
Answer: Total 50 GTTs is allowed per customer.
Answer: GTT is a feature that will work like an order that is active until the trigger condition is met.
Answer: The GTT order will be rejected if you do not have enough holdings in your Demat account.
Author

Prashant Raut is a successful professional stock market trader. He is an expert in understanding and analyzing technical charts. With his 8 years of experience and expertise, he delivers webinars on stock market concepts. He also bags the ‘Golden Book of World Record’ for having the highest number of people attending his webinar on share trading.