GTT is “Good Till Triggered” order which enables the traders to place an order which is sent to exchange only when the price conditions are met. According to Zerodha review, It introduced GTT and it is equivalent to the GTC (Good Till Cancelled) order that is offered by most of the reputed brokers in India.
GTC orders are for traders who cannot track the market daily. With such orders, one can simply place an order with the target price and let it be there. Once the price condition is met, the order executes itself. But the stock exchanges in India do not permit GTC order so a broker needs to place the pending GTC orders to the exchange in the morning every day. This placing of GTC orders every day on the trading platforms offers technical challenges and it increases the overall cost of the broker.
What is GTT Order?
Zerodha introduced GTT orders in 2019 for its traders. GTT orders are the excellent replacement of GTC orders. GTT orders and GTC orders share few similarities but GTT orders are not as convenient as GTC orders. GTT orders are most commonly used by the traders for placing stop loss and target orders & you can also place the order through Demat account, click here to know more about the opening procedure of Demat account. Zerodha allows its customers to place single-leg triggers to exit or enter stock holdings until the price conditions are met. It also enables its customers to simultaneously place target and stop loss on stock holdings. You also get the complete guide to place the GTT order in trading from the Zerodha LearnApp.
Types of GTT Orders:
- Buy GTT
- Sell GTT
- GTT for Nifty and Bank Nifty F&O
Steps to Place GTT Order on Zerodha
To place GTT orders with Zerodha, there are a few steps that must be followed:
- Login to Zerodha Kite Web. Once logged in, go to the “Market Watch” section and choose the stock, then click “…”
- Click the button “Create GTT.”
- Fill the order form and set the order type, trigger type, trigger price, and limit.
- To view the status of the GTT order, go to the “orders” and click on the GTT tab. From there you can also add or update your GTT orders.
Charges of GTT Order on Zerodha
We get to know from the broker comparison 2020 that Zerodha charges no additional fees for using the GTT feature.
Advantages & Disadvantages of GTT order
- GTT orders are valid for a year.
- Once the triggered price is reached, only then the orders are executed.
- Based on Zerodha vs Sharekhan, Traders don’t need to place an order every day if they want to enter or exit on a specific buy/sell price.
- Unlike GTC orders which can be placed at any time of the day, a trader can only place GTT orders in the market hours.
- GTT order type can only be accessed through the Zerodha Kite Mobile Trading app.
- Only 50 GTT orders are permitted per customer.
GTT is one of the best alternatives to GTC orders for investors who cannot keep track of the market conditions. GTT allows them to place one leg triggers to enter or exit from the stock when the price condition is met.