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Zerodha GTT

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Zerodha GTT

In July 2019, Zerodha has come with an innovative offering called GTT (Good Till Triggered). Zerodha GTT (Good Till Triggered) allows users to place single-leg triggers to enter or exit stock holdings until your price condition is met and also place target, and stop-loss (OCO or One Cancels Other) simultaneously for all your stock holdings. Zerodha GTT is a perfect alternative to GTC (Good Till Cancelled) which is not supported by Indian Exchanges. GTT can be used only on the Equity Cash segment in NSE & BSE. Here, on this page, get the complete review of Zerodha GTT including GTT orders, GTT charges, and many more.

Why Zerodha offer GTT orders and not GTC?

GTC orders are “Good till canceled” order, but India exchanges don’t support GTC order. It is because, exchange cancels all the pending orders at the end of every trading day, in such a case, brokers need to place all the GTC order again on the next trading day. Thus, GTC order has its own limitations, and to overcome the same, Zerodha introduced GTT orders where you select a single trigger price.

Zerodha GTT orders

You can create GTT orders on the Zerodha Kite platform that is the web and mobile trading application. Here’re the steps to create Zerodha GTT orders;

  • Log in with your Zerodha trading account on Kite.
  • On the top menu, click on the “orders” tab.
  • Click on the “GTT” option and then “Create GTT”.
  • How to Create GTC/GTT Order?
  • Select the stock and the GTT order window will open.
  • Enter transaction type, trigger type, trigger price, order quantity, and order price and then press the “place” button. Your GTT order is live now!

Let’s discuss how to place Zerodha GTT Buy Order, Zerodha GTT Sell order, and Zerodha GTT OCO order one by one with illustrations.

Zerodha GTT Buy order

To place Zerodha GTT buy order, you need to select the trigger type as ‘single’. Place a trigger price where your order will get a trigger means the order will be placed to the exchange. This price should be higher or equal to your buying price.

For example, you want to place a buy order for Wipro and the current market price of Wipro is 263. You want to place your GTT order when Wipro comes at 250 and want to buy 10 scripts. In such a case, you can place trigger price @251, qty @10, and price @250.

GTT Buy Order

Zerodha GTT Sell order

To place a GTT sell order, one needs to select the trigger type as ‘single’. Enter a trigger price and limit price where you want to execute the order. In the case of sell, the trigger price must be lower or equal to the limit price.

For example, you have 100 Wirpo shares in your holding and you want to create a GTT order.

CMP of Wipro is 263, you wish to sell your holding of Wipro @285. Your order should have trigger price @284, quantity @100, and limit price @285. When the Wipro share price reaches 284, Zerodha submits your limit order to sell your 100 shares @285.

GTT Sell Order

Zerodha GTT OCO order

Here, in the GTT OCO order, OCO stands for ‘one cancel others’. As the name itself, there are two orders placed simultaneously – stop-loss order and target order. Once the stock reaches the specified trigger price, then either of the two limit orders will get executed, and the other order gets canceled automatically. This order is perfect when you are waiting to sell a stock on your planned target price, but the market reacts in the completely opposite direction and you want to limit your losses.

For example, you want to sell 100 Wipro share @285, CMP is 263, you want to exit Wipro if it goes below 250. So in such a case, you can select trigger type as OCO. Now you have to fill Stop loss trigger Price @251, [email protected], and limit prices @250. The second trigger is for the target with trigger prices @284, qty @100, and limit prices @285.

What will happen in this scenario, if the market moves up, the possibility is your target trigger will get execute. If the market moves down, the possibility is your stop-loss trigger will get execute. When anyone trigger is executed, it automatically cancels the other trigger. That’s why it is called OCO - "One Cancels Others" order.

GTT One Cancels Other OCO

Zerodha GTT charges

    Initially, when the GTT order feature was launched by the broker then it was offered free of cost for the first 3 months. However, there are still no Zerodha GTT charges levied till now.

Zerodha GTT orders validity

    GTT Orders whether a buy or sell orders are valid for a period of 365 days means a year, if the orders are not get executed within a year, then the GTT order will be void so, you’ve to place it again.

Zerodha GTT benefits

  • Zero Zerodha GTT order charges made the feature completely free.
  • No need to place orders every day as the GTT order is valid for 365 days.
  • For GTT buy orders, no upfront margin money is required as it needs to be maintained when trigger price met.
  • You don’t need to regularly track the stock price movement to execute your order at a pre-specified price.

Zerodha GTT orders limitations

  • GTT orders are valid for 1 year.
  • No call & trade facility to place GTT orders with Zerodha.
  • There are 50 order limitations on GTT means a client can place a maximum of 50 GTT orders on Kite.
  • Although GTT is a great alternative to GTC however, GTC can be placed anytime even aftermarket hours whereas GTT orders can be placed only during market hours.
  • It is only available on CNC orders means equity delivery trading.
  • In case of corporate actions like a bonus, dividend, stock split, etc., the GTT order gets canceled for the corresponding stocks and needs to be placed again post the corporate action.

Final review on Zerodha GTT

    GTT is undoubtedly an excellent alternative of GTC for passive investors to allow them to place one-leg triggers to enter or exit from the stock when the stipulated price is met. The features come with the power to place two orders concurrently i.e. limit losses by placing stop-loss orders while target can be specified to meet the target profit. Till now, the platform is completely free at zero GTT order charges.

Last updated on 2nd Jul 2020

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Reference Topics

Zerodha GTT

FAQs

GTT order is a feature that allows you to set a trigger price for any particular stock in such a way that, as and when such trigger price is met, a limit order as per the price selected by you would be placed on the exchanges.

 

 

GTT orders are not allowed for intraday and F&O trades. It is only allowed for equity delivery segment.

 

 

There is no need to maintain the margin amount when placing the GTT order since the amount is required only when the trigger price is met. However, it is advisable to maintain sufficient cash balance in your account as your trigger price may be met any day. Your GTTs may be canceled at the sole discretion of Zerodha & the Zerodha RMS due to the shortage of cash in your account.

 

 

Single: In this feature, a single trigger price is entered to trigger a buy order or a sell order.

OCO (One cancels other):  This feature is used for selling the stock you already own. Two trigger prices are entered where one trigger price would be above the current market price behaving as a target price & one trigger price would be below the current market price behaving as a stop-loss price.

 

 

The discount brokerage facilitates customers to place GTT means Good Till Triggered order on Kite platform. Zerodha provides free GTT orders means the broker doesn’t charge any fee to place GTT orders on the Zerodha Kite web and Kite mobile app.

 

 

Yes, although initially when the GTT order feature was introduced by the broker, it was only available on the Kite web but later, it was introduced on Kite mobile app as well. Thus, now mobile users who trade on the Kite app can also place GTT orders during market hours.

 

 

The process to place the GTT order is the same for both the Kite web and kite mobile application.

Steps to place Zerodha GTT order on Kite web and Kite app:

  • Login into the kite Web and Kite Mobile app.
  • Add the stock into the market watchlist.
  • Click on the “Create GTT” order.
  • Enter details such as trigger price, quantity, trigger type whether single or OCO, and click on “create”.
  • GTT order is live now!

 

 

You can check the Zerodha GTT order status online on the Kite trading platform following these steps;

  • Login with Kite.
  • On the top menu bar, click on the “orders”.
  • Now, click on the “GTT”.
  • Here, you can check the details of GTT orders placed and you’re even allowed to modify or delete the GTT order.

 

 

Safe trading requires users to set targets as well as stop-loss orders together, so that, if stock prices go down then users can limit their losses to the maximum stop-loss bearing capacity while if prices go up then it can be sold at the target profit. Zerodha GTT OCO (One cancels others) order facilitates users to create both the orders simultaneously on Kite.

Let’s take an example if you buy Wipro at Rs. 480 and you have a target to sell it at 10% upside or in case of negative price movement, you can bear a maximum stop loss of 5%. Thus, in that case, you can create Zerodha GTT OCO order wherein you can set the target price at 10% of LTP and stop-loss at 5% of LTP. As it is an OCO order henceforth, either target order or stop-loss order will be placed based upon the price movement and another order will be automatically canceled.

Zerodha Target and Stop Loss GTT Order

As shown in the image, you just need to enter target and stop-loss % to 10% and 5% respectively, and the trigger price field will automatically show the price. Now, users have to enter the limit price and quantity, at which, they want to execute the order. If the stock crosses the target trigger price then you will book profit whereas if the stock crosses the stop-loss trigger price, then the stop-loss order will be placed on the exchange at the limit price and you will have losses.

 

 


User Reviews

avatar
1. Sachin D 7/26/2019 12:42:52 PM Reply
Nice Article, clearly explained. Thanks, Zerodha for starting GTC order. This was a long-awaited feature.