GTC or GTT Order by Zerodha

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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

  • It is a free service for the first 3 months, after which price has to be paid.
  • GTT order is only available for delivery order or CNC orders.
  • Orders that trigger will only be filled if there is sufficient fund available in case of buy order and scripts in case of the sell order.
  • When a GTT is triggered, and order is placed on the exchange, it is executed only if the limit price order placed is filled on the exchange.

Why GTT and not GTC?

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.

  • Creating GTC/GTT Order on KITE

    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”.

    How to Create GTC/GTT Order?
  • Zerodha GTT Buy Order

    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.

    GTT Buy Order
  • Zerodha GTT Sell Order

    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.

    GTT Sell Order
  • Zerodha GTC/GTT OCO order

    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.

    GTT One Cancels Other OCO

    Benefits of Zerodha GTT

    • You have some degree of safety with sudden market movement. As you have trigger price set for placing your limit order in the market.
    • You don’t have to keep an eye on the market for buying or selling a specific script on your planned price.
    • For Buy order, you don't have to keep margin money upfront, you need margin money when your GTT trigger met.
    • GTT order is valid for one year.

    Considerations of Zerodha GTT

    • The trigger set on a GTT is valid only once. If your trigger price match with the market price on any particular day but order not get filled on limit prices on that day, then your GTT order will get canceled and need to create again.
    • Order is valid for one year only so after one year it needs to be re-created if needed.
    • All orders will be triggered and placed only during market hours.
    • GTT orders cannot be placed through call n trade. Orders has to be placed through Kite only.
    • A maximum of 50 active GTTs is allowed at a time for one account.
    • In case of corporate actions like bonus, dividend, stock split, etc., GTT order get canceled for the corresponding stocks and needs to be place again post the corporate action.

Last updated on 30th Jul 2019

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FAQs

  1. What is GTT order?

    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.

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  2. Can I place GTT orders for intraday and FnO trades?

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

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  3. Do I need to block margin money when placing GTT orders for buy orders?

    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.

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  4. What are the two types of GTT orders?

    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.

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User Comments

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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.






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