What is GTT Orders? Benefits, Steps and Procedure for GTT Order

The complete GTT form on the stock market has yet to be triggered. This is one of the essential features of investing in equity markets because it enables investors to purchase shares at a price that suits their needs.

A slight change in the share market price can be significant for investors with a large proportion of their capital invested in stocks to realise profits or avoid losses. Investors, therefore, make sure that their investments are bought or sold at the price they want, in line with their investment strategy.

The GTT order is a feature that allows investors to buy and sell according to their predetermined prices. 

Take an example to understand what is GTT Order

If the stock is at 103, a GTT order can be placed at Rs. 100, which allows the investor to buy the stock when it reaches Rs. 100. An example of this GTT order illustrates that investors do not have to constantly check the stock price, as an order is executed automatically when a set price has been triggered.

What Is the GTT Order?

GTT's complete form in the share market is Good Till Triggered. This allows investors to place actively traded orders until a particular price-based trigger condition is fulfilled. The investors shall specify the trigger price and the limit, or market price, for the execution of the order with a GTT order. The order shall be activated and sent to a market for execution at the specified limit or prevailing market price once the trigger price has been reached.

Types And Conditions For Entry Price In GTT

Orders for GTT are divided into two categories. 

1. Single: only one entry price shall be required to specify the number of orders and prices for this type of GTT order. 

2. One Cancels Other (OCO): It enables investors to submit two orders concurrently (with two entry prices), with the caveat that if one order is carried out, the other order is immediately cancelled.

For the entry price, the following conditions must be met: 

1. A minimum difference of 0.5% between the initial and last traded prices shall be required. 2. The minimum price gap should be 1% if you are placing an OCO GTT order with a standard order.

What's The Procedure For Placing Orders With GTT?

Please refer to the steps for placing a GTT order. 

1. Visit the stocks you are interested in buying or selling, and log on to your demat account. 
2. Click on GTT orders, then click on options other than buy or sell. 
3. Click on the Place Order button and fill in the trigger price.

Steps To Place An Order Of GTT In Combination With A Base Order

As you now know what a GTT order is,  the procedure for placing the GTT order and base order is listed below; 

1. Go to your Demat account to browse the stock you are interested in buying or selling. 

2. Select GTT orders from the list of possibilities after selecting the buy or sell option.

3. Complete the base order's information and decide whether you want your GTT order to include a profit and stop loss leg or only a stop loss leg.

How Does GTT Order Assist Investors?

Investors who wish to simplify their trading strategies and exploit individual price fluctuations without continuously monitoring the market will benefit from GTT orders. These instruments enable investors to specify and adjust stock prices based on their precise business criteria, providing flexibility and convenience.

Another example of the GTT order. Let's say the stock is priced at Rs. 250, and you want to sell your shares at Rs. 275. At this price, you can make an order for GTT. Your shares will be sold based on a scheduled price once your stocks have reached Rs. 275.

Benefits Of GTT Orders

The placing of a GTT order offers several advantages:

1. Sit back and relax: Once you place your order, the markets don't need to be constantly monitored. 

2. Simple to use: Just choose your order at your desired price, then insert a longer-term stop defect and target. 

3. Order Validity Lifetime: The order is not time-bound. Until it is triggered, it will remain valid for life.

4. Subscription fee: Use this feature for free without paying a subscription fee. No additional fees or charges will be charged for using this order. The brokerage costs shall be borne entirely by you. 

5. Flexible ordering: Change your Order at any time and as many times as you like. Easily change the order's entry and exit conditions at any time. 

6. Applicable to F&O and Delivery: The GTT order can be placed on entry into or out of the F&O position and an Overnight Equity Position.

Is There Any Way To Modify Or Delete My GTT Orders? 

Active GTT orders may be modified or deleted. The base order must be fully executed on the exchange if you have placed a GTT with a base order. The GTTs will be activated only if this is the case.

Conclusion

This article concludes what is GTT order through the above information. By allowing investors to automate their trading strategies and exploit specific market conditions without having to monitor them constantly, GTT orders offer an advantage. This is intended to provide more flexibility and control over the timing of transactions.

Would you like to invest, but a long-term commitment doesn't interest you? With the Good Till Trigger feature of the blinkX trading app and web platform, you can trade and invest at your own pace. You choose your places of entry and exit, where to place the GTT orders, and we will take care of everything else in our orderly and automated processes.