What is a Good Till Triggered (GTT) Order?

Introduction

A Good Till Triggered (GTT) Order is a type of order in the Indian stock market that remains valid until a predefined trigger condition is met. This feature is particularly useful for traders and investors who want to execute buy or sell orders at specific price levels without continuously monitoring the market.

The GTT order is similar to a limit order but remains active until the trigger price is reached. It allows investors to set target prices for buying or selling stocks in advance, reducing the need for constant market tracking.

This order type is widely used by retail investors who prefer long-term investment strategies and want to automate their trading process efficiently.

How GTT Orders Work

A GTT order consists of two key components:

1. Trigger Price – The price level at which the order is activated.
2. Limit Price – The price at which the order is executed once triggered.

When the stock price reaches the trigger price set by the investor, the GTT order becomes an active limit order and is sent to the exchange. If the stock reaches the limit price, the trade is executed.

Example of a GTT Order

Buying Scenario

Suppose you want to buy shares of Reliance Industries at Rs. 2,200, but the current market price is Rs. 2,500. You can set a GTT order with a trigger price of Rs. 2,200 and a limit price of Rs. 2,195 (to ensure execution at or below your preferred rate). The order remains inactive until Reliance shares drop to Rs. 2,200, at which point it is triggered.

Selling Scenario

Assume you own Infosys shares, currently priced at Rs. 1,500, and you want to sell if the price reaches Rs. 1,600. You can set a GTT order with a trigger price of Rs. 1,600 and a limit price of Rs. 1,605 to ensure you sell at your desired price or higher.

Types of GTT Orders

GTT orders can be used in different ways based on an investor’s strategy:

1. Single-leg GTT Order: A simple buy or sell order that gets triggered when the set price condition is met.
2. OCO (One Cancels the Other) GTT Order: In this case, two conditions are set – one for profit booking and one for stop-loss. If one of these conditions is met, the other is automatically canceled.

Benefits of GTT Orders

1. Convenience – Investors don’t need to track the market constantly.
2. Automated Execution – Orders are automatically placed when conditions are met.
3. Risk Management – Helps in setting stop-loss and target prices.
4. Long-Term Planning – Useful for investors aiming for specific entry or exit points.
5. Reduced Emotional Trading – Automated order placement prevents impulsive decisions based on market fluctuations.
6. Better Price Execution – Ensures that investors buy or sell at their preferred price levels.

Risks and Limitations

• Order Cancellation – If the limit price is not reached after triggering, the order remains unexecuted.
• Market Volatility – Sharp price movements may cause orders to remain unexecuted or execute at unfavorable prices.
• Limited Validity – Some brokers set a validity period for GTT orders (e.g., 1 year).
• Gaps in Market Price – If the stock opens significantly higher or lower than the trigger price due to market events, execution may not happen as expected.

How to Place a GTT Order in India

1. Login to Your Trading Account – Open the brokerage platform (Zerodha, Upstox, Angel One, etc.).
2. Select the Stock – Search for the stock in which you want to place the GTT order.
3. Enter the Trigger Price & Limit Price – Define your desired price levels.
4. Choose Buy or Sell – Select whether you want to place a buy or sell GTT order.
5. Confirm the Order – Submit the order and review it periodically.

Best Platforms Offering GTT Orders in India

Several Indian stock brokers provide the GTT feature, including:

• Zerodha GTT – One of the most popular brokers offering GTT orders.
• Upstox – Provides GTT orders with an easy-to-use interface.
• Angel One – Supports GTT orders for different trading strategies.
• Groww – Offers GTT order placement with user-friendly navigation.
• 5paisa – Enables automated trading using GTT orders.

FAQs on GTT Orders

1. What is the difference between a GTT order and a normal limit order?

A normal limit order is valid only for a single trading day, whereas a GTT order remains active until the trigger condition is met or the broker-defined validity period expires.

2. Are GTT orders available for intraday trading?

No, GTT orders are meant for long-term investments and cannot be used for intraday trading.

3. Do GTT orders get executed during pre-market or after-market sessions?

No, GTT orders are triggered only during regular market hours when the stock reaches the specified price.

4. Can I modify or cancel a GTT order?

Yes, investors can modify or cancel their GTT orders anytime before they are triggered.

5. Do all stock brokers offer GTT orders in India?

No, GTT orders are available only with select brokers like Zerodha, Upstox, Angel One, and Groww.

6. What happens if my GTT order is triggered but not executed?

If the trigger price is met but the stock does not reach the limit price, the order remains unexecuted. Investors need to adjust their prices if necessary.

7. Are there any extra charges for placing GTT orders?

Most brokers do not charge additional fees for GTT orders, but it is best to check with your specific broker for any applicable charges.

Conclusion

GTT orders are a powerful tool for Indian stock market investors, offering convenience and precision in trade execution. By using this feature, traders can automate their investment strategies without actively monitoring stock prices.

By understanding the risks and best practices, investors can use GTT orders to efficiently manage their stock market transactions and optimize their trading strategies.

Disclaimer: This article is for informational purposes only and should not be considered financial advice. Investors should conduct thorough research or consult a financial advisor before making investment decisions.