Zerodha developed an innovative alternative to GTC that offers all of its features and more. Zerodha launched GTC (Good Till Canceled) order with the name GTT (Good Till Triggered) Orders. With Zerodha GTT order, you can place single-leg triggers to enter or exit stock holdings until your price condition is met and also simultaneously place target and stop-loss (OCO or One Cancels Other) for all your stock holdings. GTT can be used only on Equity Cash segment in NSE & BSE.
Points to know about Zerodha GTT Orders
GTC orders are good till canceled order, but exchange in India doesn’t support GTC order. Exchange cancels all the pending orders at the end of every trading day. In such a case, brokers need to place all the canceled GTC order next trading day. GTC order has its own limitations. To overcome this limitation, Zerodha introduced GTT orders where you select a single trigger price
Lets discuss - How to place GTT order with Zerodha? GTT Buy Order explained with examples, GTT Sell Order explained with examples, GTT One Cancels Other (OCO) Order explained with example.
To create GTT order, you need to go to the Order tab in Kite. Select GTT from the top left. Then select the script, fill the price details and click on “Create GTT”.
For buy order with GTT, you need to select the trigger type as single. Place a trigger price where your order will get a trigger. 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.
To place a sell order with GTT, you need to select the trigger type as Single. Enter a trigger price and limit price where you want this order to get executed. 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 Wipro share price reach at 284, Zerodha submits your limit order to sell your 100 shares @285.
OCO is One Cancels Other. In this order, one can place a stop-loss order and target order at the same time. Either of the two limit orders get executed when trigger price is met and the other gets cancelled automatically. This order is perfect when you are waiting to sell a script on your planned target price, but 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 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 target with trigger prices @284, qty @100, and limit prices @285.
What will happen in this scenario, if the market moves up, possibility is your target trigger will get execute. If market move down, the possibility is your stop loss trigger will get execute. When any one trigger is executed, its automatically cancel the other trigger. Thats why its called OCO - "One Cancels Others" order.
Last updated on 30th Jul 2019
GTT 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.