What Is GTT (Good Till Triggered) Order in the Stock Market

A GTT (Good Till Triggered) order is designed to allow orders to be placed in advance and activated only when a specified price condition is met. It is commonly used in situations where continuous market tracking is not required.

A GTT order works through two predefined price points:

• Trigger Price
  The price level that activates the order. Until this level is reached, the order remains inactive and is not sent to the exchange.
  

• Limit Price
  The price at which the order is placed once the trigger condition is met. This determines the terms at which the order enters the market.
  

• Order Activation
  When the market price reaches the trigger price, the system sends the order to the exchange as a limit order.
  

• Execution Dependency
  Execution depends on market availability at the specified limit price after the order is triggered.

Unlike regular day orders that expire at the end of a trading session, GTT orders remain valid until the trigger condition is met or until the broker-defined validity period expires.

Overall, a GTT order provides a structured way to place conditional orders that activate only when predefined price levels are reached, without requiring continuous monitoring during market hours.

To understand what a GTT order is, it helps to view it as a conditional instruction stored with the broker until a trigger condition is met. The general workflow is as follows:

1. The user selects a stock and defines:

   • A trigger price, which activates the order

   • A limit price, at which the order is placed on the exchange

2. Until the trigger price is reached, the GTT order remains inactive and is not sent to the exchange

3. Once the trigger condition is met, the broker places a limit order on the exchange

4. Execution depends on whether the market price matches the specified limit price

5. If the limit price is not matched, the order remains pending until it expires or is cancelled

This explains the operational meaning of a GTT order in the stock market without implying execution certainty.

Single Trigger vs OCO (One Cancels Other)

GTT orders are available in two formats:

• Single Trigger GTT:

Allows placement of one conditional buy or sell order using a single trigger and limit price.

• OCO GTT (One Cancels Other):

Allows two trigger conditions to be set for the same stock. When one trigger is activated and placed on the exchange, the other is automatically cancelled.

Illustrative example:

• Stock: Infosys

• Current Market Price: ₹4,500

• Scenario: Illustration of a GTT buy order placed below the prevailing market price

• Trigger Price: ₹4,400

• Limit Price: ₹4,395
   

A GTT order with these values places a limit buy order at ₹4,395 when the price hits ₹4,400. Execution occurs if market conditions match; otherwise, the order remains unfilled.

Understanding the features of GTT orders helps clarify how a GTT order in the stock market functions at a system level and how it differs from regular day or validity-based orders. These Good Till Triggered features describe how such orders are structured, activated, and managed across broker platforms.

Key features include:

• Extended Validity:
  Unlike day orders that expire at the end of a trading session, GTT orders remain active until the specified trigger condition is met or until the broker-defined expiry period is reached.
  

• Trigger-Based Activation:
  A GTT order is not immediately sent to the exchange. It is activated only when the market price reaches the predefined trigger level set by the user.
  

• Limit Order Placement:
  Once triggered, the system places a limit order on the exchange at the specified price, subject to prevailing market liquidity and matching conditions.
  

• Single and Dual Trigger Structures:
  GTT orders may be configured as single-trigger orders or as OCO (One Cancels the Other) orders, where two trigger conditions are set and execution of one cancels the other.
  

• Broker-Level Order Handling:
  Until the trigger condition is met, GTT orders are stored at the broker level and are not visible in the exchange order book.
  

• Standard Brokerage Treatment:
  In most cases, brokers do not levy separate charges for creating a GTT order. Once triggered and placed on the exchange, standard brokerage and statutory charges apply as per the executed trade.
   

Taken together, these features explain how GTT orders are designed to manage conditional instructions over an extended period, outlining their role in structured order placement without implying execution certainty or outcomes.

While a GTT order provides conditional execution in the share market, certain structural limitations apply:

• One-time trigger: Once activated, the GTT instruction is removed regardless of whether execution occurs

• Fund or holding availability: Required funds or securities must be available at the time the order reaches the exchange

• Trigger-based placement: Orders are transmitted to the exchange only after the trigger price is reached

• Broker dependency: Availability and conditions for GTT orders differ across brokers

• Validity period: Most brokers allow GTT orders to remain active for up to one year, subject to platform-defined limits

GTT orders are placed through a broker’s trading platform by:

• Selecting the stock and GTT option.

• Choosing single or OCO trigger type.

• Entering trigger price and limit price.

• Submitting the order for confirmation.

GTT orders do not generally attract separate placement fees. In terms of GT charges, brokers typically apply standard brokerage only if the order is executed on the exchange.

• Charges: No additional fee for creating a GTT order; regular brokerage applies on execution

• Validity: Commonly allowed for up to one year, unless triggered or cancelled earlier

• Order limits: Brokers may cap the number of active GTT orders per account

GTT orders are typically associated with scenarios where predefined price conditions are preferred:

• Placing conditional buy or sell instructions at specific price levels

• Defining exit conditions using the OCO format

• Maintaining pending instructions without continuous market tracking

• Managing conditional orders across longer timeframes

A GTT (Good Till Triggered) order functions as a condition-based order type within the stock market, allowing predefined instructions to be activated when specific price levels are reached. Rather than operating in real time like regular orders, a GTT order remains dormant until its trigger condition occurs. Understanding how GTT orders work, their validity, limitations, and applicable charges helps clarify their role within broker platforms and the broader order execution framework.

This content is for informational purposes only and the same should not be construed as investment advice. Bajaj Finserv Direct Limited shall not be liable or responsible for any investment decision that you may take based on this content.