Good Till Trigger (GTT) is a feature that allows users to place buy or sell orders of any stock at market or limit price. These orders are executed (triggered) once the market price of the stock reaches your trigger price i.e the price you mentioned in the GTT Order. GTT orders are valid for 1 year. Good Till Trigger (GTT) orders can be placed only in delivery and margin basis trades, not in intraday.
The Good Till Trigger (GTT) order feature is one such new feature. Let’s learn more about it.
What is Good Till Trigger (GTT) ?
GTT order stands for Good Till Trigger (GTT). GTT order allows you to place buy or sell orders at a predetermined limit price. These orders are executed if the market price of the stock reaches your specified price also called as Trigger Price before the GTT order expires.
A GTT order is a limit order where the product type can be delivery or margin. You cannot place GTT orders in the intraday product type. You can also place GTT orders in the derivatives segment. In this case the GTT order will be executed as a carry forward type order and order expiry will be as per contract expiry date.
Benefits of GTT
- Save Time
- Simple To Use
- Manage Trades Better
- Longer Validity of Orders
How does Good Till Trigger (GTT) Help You?
The GTT order feature helps you to save your time and energy.
Suppose that you want to invest in a stock and you also have an entry position in mind. Or suppose that you want to exit your position at a certain price point. In both these cases you can create a Good Till Trigger (GTT) order with your desired price points and then stop tracking the movement of prices.
Stock market prices are quite volatile and they go up and down. Whether you are a full time trader who’s into trading day in and day out, or you trade or invest in stocks on a part-time basis, and have a full-time job or business on the side, thus cannot track the price movement all day long, everyday – Good Till Trigger (GTT) is the tool to use. it’s for everyone.
The Good Till Trigger (GTT) order allows you to execute trades at your desired price point automatically so you can do other things with your time.
For Example:
Tata Power is trading at Rs 260, You are willing to invest in the company but at a lower price of Rs 220.You are not a full time trader or investor In this case you can place a Good Till Trigger (GTT) buy order at Rs 220. So whenever the price of the stock falls to Rs 220 the Good Till Trigger (GTT) order will get triggered and the stock will be bought at price.
How to place a GTT order?
Now Good Till Trigger (GTT) is supported by Groww, Upstox, Zerodha, Angle broking and more stock market broker platforms.
Here is a common steps to avail benefits of this tool
Let’s look at how easy it is to place the GTT order in any broker platform
Steps
Step 1: Log in on the platform and head to Discover.
Step 2: Tap on GTT under the Tools section.
Step 3: Tap on create GTT and search for the scrip for which you want to place the GTT order.
Step 4: Enter the quantity, the limit price, the trigger price or the price percentage and select the product type.
Step 5: Tap on create GTT.
That’s it – your GTT order is created. You can track the updates in the GTT section.
You can use the Good Till Trigger (GTT) feature like an order that stays active across multiple trading sessions until the trigger condition is met.
You may either place a buy or sell GTT.
Buy GTT
Buy GTT is used for creating triggers to buy stocks for delivery. With a GTT buy order, when the trigger price is hit, a buy order with the limit price mentioned is placed on the exchange.
Sell GTT
Sell GTT is used to exit current stock holdings, either just a target order or both stop loss and target where triggering of one will cancel the other (OCO).
Learn More about Share market
Conclusion
Tracking the stock every second for it to reach your desired level is tiring is not easy. The new tool Good Till Trigger (GTT) is very useful for especially new and unskilled investors. it is time as well as money saving tool. Pick your entry and exit positions, place GTT orders, and let our smooth and automated processes take care of the rest.
Disclaimer : Stock Market Investments are subject to market risks, read all scheme related documents carefully. Investment in Stock Market involves investment risks such as trading volumes, settlement risk, liquidity risk, default risk including the possible loss of principal. Moneytek.in will not responsible for it.