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

A GTT (Good Till Triggered) order is a powerful feature offered by many brokers in India to help automate trades. It enables investors to set buy or sell orders that remain valid until a specific trigger condition is met. This tool is commonly used by long-term investors who do not actively monitor the market throughout the day.

GTT, or Good Till Triggered, is a type of order where the user sets a trigger price and a limit price. Unlike regular day orders that expire by the end of the trading session, GTT orders remain active until the condition is fulfilled or until they expire (typically after a year).

Here's how it works:

• Trigger Price: The price that activates the order.
  

• Limit Price: The price at which the order is placed once triggered.
  

Once the stock hits the trigger price, the order is sent to the exchange as a limit order. If the market matches the limit price, the trade gets executed.

To understand the GTT order workflow, it helps to break it into steps:

1. The user selects the stock and sets:

   • A trigger price that activates the order.

   • A limit price at which the order should be executed.

2. The order remains inactive until the market price hits the trigger price.

3. When triggered, a limit order is placed on the exchange.

4. If the stock reaches the limit price, the trade is executed. If not, the limit order remains until it is fulfilled or expires.

This functionality is commonly used in scenarios such as buying at pre-decided price levels or setting sell levels.

Single Trigger vs OCO (One Cancels Other)

There are two main types of GTT orders:

• Single Trigger GTT: Used to either buy or sell with a single trigger and limit.

• OCO GTT (One Cancels Other): Allows setting two triggers—typically for target and stop-loss. Once one is executed, the other is automatically cancelled.

This dual-trigger setup is ideal for managing risk and locking in profits.

Consider a practical example:

• Stock: Infosys
  

• Current Market Price: ₹4,500
  

• Objective: Buy at a lower price
  

• Trigger Price: ₹4,400
  

• Limit Price: ₹4,395
  

You place a GTT order with these values. When Infosys hits ₹4,400, your limit buy order is placed at ₹4,395. If market conditions allow, the trade is executed. If the stock doesn’t fall further, it may not get filled.

GTT orders offer the following features:

• Convenience: No need to monitor the market constantly.
  

• Discipline: Helps minimize emotional trading.
  

• Automation: Executes orders automatically when trigger conditions are met, subject to market execution.
  

• Long-Term Focus: Applicable for various trading strategies
  

• No Additional Charges: Typically, brokers do not charge extra for using GTT orders.

Despite its benefits, GTT has a few drawbacks:

• One-Time Use: The order is removed after it is triggered, regardless of execution.
  

• Fund Availability: You must have enough balance at the time of execution.
  

• Not Real-Time: Order is sent to the exchange only after the trigger, which could result in missed trades.
  

• Platform-Specific: Not all brokers offer GTT, and usage rules may vary.
  

• Expiry Limits: Most GTTs are valid for up to one year, with a maximum cap on active orders per user.

Placing a GTT order is typically a straightforward process. Here’s a general guide:

1. Log in to your broker’s trading platform.
   

2. Select the stock and click on the "GTT" option.
   

3. Choose between single or OCO trigger.
   

4. Enter the trigger price and limit price.
   

5. Confirm and submit the order.
   

Once submitted, the order will remain until triggered or expired.

Most brokers do not charge extra fees for GTT orders. They are treated like regular limit orders once placed on the exchange.

• Cost: Free to place (regular brokerage applies upon execution).
  

• Validity: Typically up to one year or until triggered.
  

• Limits: Brokers may limit the number of active GTTs (e.g., 50 or 100).

GTT orders are commonly used in the following scenarios:

• Accumulating Stocks on Dips: Investors commonly use GTT orders for scenarios such as buying at pre-decided price levels, setting sell levels to capture potential gains, or applying OCO for risk management.

• Target Profit Booking: GTT orders may be set to sell at target prices to lock in profits.

• Stop-Loss Setup: The OCO feature may be used to manage downside risk.

• Busy Schedule: Useful for traders who cannot monitor the market continuously.

GTT orders simplify stock trading by offering an automated, disciplined approach to market participation. GTT orders provide an automated way to participate in markets without constant monitoring. They offer a structured approach to order placement but should be understood in terms of validity, limitations, and broker-specific rules.

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.