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1
GTT Meaning In Share Market
2
Types Of GTT Orders
3
How To Place A GTT Order?
4
Benefits Of Using GTT Orders
5
Conclusion
A Good Till Triggered (GTT) order is a special type of order in the stock market. It lets you set up trades that will get executed only when certain price conditions are met. You'll find GTT orders useful as it saves you the trouble of monitoring the market constantly. In this article, we will understand what a GTT order is, how to place a GTT order, and its benefits.
GTT in the share market makes trading simpler by letting you set specific conditions for your trades. For example, if you want to buy a stock at ₹100 but it currently costs ₹120, you can create a GTT order with ₹100 as your trigger price. Your order will wait until the stock falls to ₹100 before activating.
Similarly, you can also set selling prices for stocks that you hold in your portfolio at pre-determined prices.
You don't need to keep checking prices when you use GTT orders. They're helpful whether you're new to trading or have years of experience. Many traders use GTT orders to set up stop-losses and take-profit levels.
There are two main types of GTT orders you can use: Single Trigger GTT and One Cancel Other (OCO) GTT.
A Single Trigger GTT order activates when a stock reaches the price you set. Once triggered, it places a limit order at your specified price.
This type works well when you want to buy or sell at a certain price without constantly watching the market. For instance, if you want to buy shares when their price drops to ₹500, you can set a Single Trigger GTT with ₹500 as your trigger.
An OCO GTT order lets you set two triggers at once—usually a target price and a stop-loss price. When one condition is met, the other is automatically canceled.
You'll find OCO GTT orders helpful for managing risk and maximising profits. They're often used to set both stop-loss and take-profit levels for a trade.
For example, if you own shares priced at ₹200, you can set an OCO GTT with a stop-loss at ₹180 and a take-profit at ₹220. If the price falls to ₹180, your stop-loss order will trigger, and the take-profit order will be canceled.
Placing a Good till Triggered order is straightforward. Here’s a step-by-step guide:
First, log in to your trading platform using your broker's app or website.
Search for the stock you want to trade.
Navigate to the order type section and select "Good Till Triggered."
Enter the price at which you want your order to activate. This is your trigger price.
Specify your limit price and the number of shares you want to trade.
Review all details and submit your order.
GTT orders in the stock market offer several advantages that make them attractive for your investment strategy.
Automation of trades is one of the key GTT order benefits. Your trades happen automatically based on your conditions. You don't need to watch the market constantly. This helps if you have limited time or prefer to stick to your planned strategies.
You can protect your investments by setting stop-loss triggers. These limit potential losses during market downturns. Using stop-losses helps you maintain discipline in your trading approach.
Take-profit triggers help you lock in gains at prices you choose. This ensures you don't miss out on profits because of market fluctuations or being away from your trading screen.
GTT orders make trading more efficient because they don't require you to intervene manually. You set your conditions once, and the system handles the execution.
You can use GTT orders for both short-term trading and long-term investment plans. They work well in different market conditions and for various strategies.
By setting trade conditions in advance, GTT orders help you avoid making impulsive decisions based on emotions. They keep you committed to your strategy even when markets get volatile.
Most GTT orders remain valid for up to a year. This means you can set long-term triggers without worrying about renewing them frequently.
Good Till Triggered (GTT) orders help traders automate buy or sell orders at preset price points, reducing the need for constant market monitoring. Ideal for long-term investors and swing traders, they enhance trading discipline and efficiency. However, understanding risks like gap up and gap down is essential for effective use of GTT orders.
GTT orders offer significant advantages over regular orders in certain situations:
Here's how GTT orders work in practice:
If you want to purchase a stock at ₹100 but it currently trades at ₹120, you can create a GTT order with ₹100 as your trigger price. Your order waits until the stock falls to that price before activating.
For an OCO (One Cancels Other) GTT order, consider this scenario:
You own shares valued at ₹200. You set an OCO GTT with a stop-loss at ₹180 and a take-profit at ₹220. If the price drops to ₹180, your stop-loss triggers, selling your shares and automatically canceling the take-profit order. Conversely, if the price rises to ₹220, your take-profit executes and the stop-loss cancels.
GTT orders in the stock market cannot be used for intraday trading as they are designed for longer-term price triggers. These orders remain active until triggered, canceled, or expired. When setting a GTT order, you establish both a trigger price that activates the order and a limit price at which the order enters the market.
While you can place a GTT sell order anytime, it executes only during market hours when the trigger price is reached. You cannot execute a GTT order outside trading hours, even if placed beforehand.
GTT orders in the share market remain valid for 365 days from placement. If the trigger price isn't reached within this period, the order expires automatically.
Calculate your Net P&L after deducting all the charges like Tax, Brokerage, etc.
Find your required margin.
Calculate the average price you paid for a stock and determine your total cost.
Estimate your investment growth. Calculate potential returns on one-time investments.
Forecast your investment returns. Understand potential growth with regular contributions.
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