GTT: What Is Good Till Triggered?

Key Highlights

• GTT (Good Till Triggered) allows traders to place buy or sell orders for stocks that remain active until a specified trigger condition is met. Its validity period is one year.

• GTT orders get executed only when the specified trigger conditions are satisfied, ensuring that orders are not placed prematurely.

• GTT includes a ‘single trigger’ feature, and a ‘one cancels other’ (OCO) feature, offering flexibility in setting target and stop loss prices.

• Sell GTT orders triggered by equity holdings must be authorised using CDSL TPIN, unless POA or DDPI is provided.

What Is Good Till Triggered (GTT) in Share Market?

An order with the Good Till Triggered (GTT) feature remains in effect until the trigger condition is satisfied. The trigger's validity period is one year. In the event that there are enough funds in the account, a limit order is placed and carried out. Every time a GTT is triggered and an order is placed on the exchange; traders receive a notification to the registered email address and mobile phone.

No actual order is placed by using the GTT Feature until and unless the “Trigger Conditions” that you specify are satisfied. The trading platform stores the trigger conditions that you have specified. It places a limit order to the exchange as soon as the trigger conditions are satisfied. An important thing to note is that, for the CNC-type orders on the NSE and BSE, the GTT in share market is only permitted on the Equity Cash Segment.

Key Features of GTT Orders in F&O Trading

• Activates only at your chosen level: GTT will execute your trade at the precise moment when the market reaches your predetermined trigger conditions.

• Stays active for many days: GTT orders do not expire at the end of the day like normal orders. GTT orders remain active until either your target price is reached or you decide to cancel them.

• Helps control losses: You can add your stop loss in advance to protect your capital. You can set a target price where you want to exit with profit.

• Brings discipline in trading: The system requires you to establish your trading plan before you begin trading activities. The system reduces emotional trading choices which leads to better results over extended periods.

Why Use GTT?

GTT's primary benefit exists because it enables process automation while allowing users to maintain control over their activities. You can avoid continuously watching price changes throughout the day. Your order will execute automatically when your selected price is reached.

GTT also helps remove emotions like fear and greed. Decisions are made calmly in advance, not in the heat of the moment. The system provides ease of use for both professional traders actively in their careers and investors who plan to invest over extended periods. GTT establishes trading discipline while conserving time and enabling you to trade with greater assurance through its stress-free operation.

How to Use GTT Order in the Stock Market?

Using a GTT order is very easy and does not need any technical knowledge. First, choose the stock you want to buy or sell from your trading app.

1. Select the GTT order option instead of a normal market order. Now set a trigger price. This is the price level where you want the trade to happen. It can be for buying, selling, or placing a stop loss.

2. Enter the order price and the number of shares you want to trade. Carefully check all details and confirm the order.

Once placed, the system will keep tracking the market for you. When the price reaches your trigger level, the order is automatically executed.

You can also change or cancel your GTT order any time before it gets triggered, giving you full control over your trade.

Using The Good Till Triggered (GTT) Feature

You can use the GTT feature for both buy and sell orders.

How to use the Buy GTT feature:

1. Open your broker’s order window and select GTT.
2. Choose Buy GTT to purchase or Sell GTT to exit/short.
3. For Buy GTT, select the asset and quantity.
4. Set the Trigger Price where the alert should activate.
5. Set the Limit Price at which the buy order will be placed after the trigger.
6. Review order details, charges, and validity, then confirm.
7. The order remains inactive until the trigger price is reached.
8. Once triggered, a limit buy order is sent to the exchange.
9. Execution happens only at or better than your limit price.

How to use the Sell GTT feature:

1. For Sell GTT, ensure shares are in your demat account.
   
2. Set target and/or stop-loss with trigger and limit prices.
   
3. On trigger, the sell limit order is placed.
   
4. Modify or cancel any time before the trigger is hit.
   

An Illustration of GTT Order

Let’s understand more about GTT with the help of an example. Since, two cases (buy and sell) exist here, let’s look at each of them individually.

GTT for Buy Order

It is necessary to input the trigger price and target price below the current market price (CMP) to make a GTT order for purchasing below the CMP.

Let’s say Ashok Leyland's CMP is ₹1264. Entering ₹2000 as the trigger price and ₹2200 as the target price places a GTT order. The exchange receives a purchase limit order for ₹2200 when the CMP reaches the trigger price.

GTT for Sell Order

A GTT order must have the trigger price and target price entered above the current market price (CMP) in order to sell above the CMP.

For instance, the CMP of Ashok Leyland is ₹789. The target price is ₹880, and the trigger price is ₹965 when placing a GTT. The exchange receives a sell limit order for ₹880 when the CMP reaches the trigger price.

Types of Good Till Triggered Features

GTT in share market comes in two categories:

Single trigger: single trigger price that you enter could be used to start a target order. This is possible if the last traded price [**LTP**) you choose is higher than the current market price. Or else, you can use a stop loss order if the LTP you choose is lower than the current market price.

One cancels other (OCO): This feature type is applicable to the stocks that you already have. You can enter two trigger prices, one of which would be above the current market price and act as a target price. The other one shall be below the CMP and will act as a stop-loss price.

How Does the GTT Feature Benefit You?

GTT can assist you in buying or selling a stock at the price you choose, whether you have already invested in it or plan to do so. The order will be carried out as soon as the market price of the stock and the GTT trigger price coincide. GTT has a one-year validity period, and the order will expire if the stock doesn't rise to the desired price during that time.

It reduces the need for constant market monitoring, making it ideal for you if you are a busy investor. You can pre-set your desired buy or sell levels and let the system handle execution automatically. This ensures you never miss an opportunity even when you’re offline.

GTT also helps in disciplined trading by removing emotional decision making. It supports both target profit-taking and stop-loss protection for risk management. By automating orders, it gives you more control and consistency in executing your strategies.

Is GTT Order Applicable on All Stocks?

No, GTT orders are not applicable to all stocks. Brokers usually allow GTT only on selected stocks that have good liquidity and stable price movement. Illiquid stocks or contracts that are close to expiry may not support GTT.

It is important to check whether a particular stock or contract is eligible before placing a GTT request. This avoids confusion and failed triggers later. Always review broker guidelines to understand where GTT can and cannot be used.

Are There Any Drawbacks to Using GTT?

GTT does have some drawbacks you should consider. The order is only triggered when the market price exactly matches or crosses your set trigger price, which means volatile price movements might skip execution. Since GTT orders work as limit orders after triggering, they will only execute at or better than your limit price, which could result in missed trades if the price moves away quickly.

There’s also no guarantee of execution in low-liquidity stocks, even if the trigger is hit. GTT orders remain valid for up to a year, but corporate actions like splits or bonuses can cancel them automatically. Additionally, relying solely on GTT may cause you to overlook market changes that require strategy adjustments before execution.

Things to Note About GTT Orders

You must be aware of the following facts before placing GTT orders.

• Sell GTT orders triggered by equities holdings must be authorised using CDSL TPIN. his is not applicable if you provide power of attorney (POA) or demat debit and pledge instruction (DDPI).
• For index futures and options, GTT OCO only accepts normal margin order (NRML) order types.
• In the Indian stock market, only F&O derivative contracts are permitted to use Buy GTT OCO.
• For the equity segment, a GTT (Good Till Triggered) is good for a period of one year following the placement date. The GTT will be automatically cancelled after a year, although it can be formed again if necessary.
• A maximum of 250 GTTs may be active at once on one account.
• You must always keep a sufficient cash level and a sufficient number of holdings in your trading account for all of your GTT orders. This is necessary to trigger the orders correctly in accordance with the conditions you specify.
• A minimum difference of 0.5% between the entering price and the latest trading price is mandatory.
• The minimum price gap when placing an OCO GTT order with a normal one should be 1%.
• Every time a GTT is activated and an order is made on the exchange, traders get an email notification.

Conclusion

Brokers have developed the GTT trigger as a replacement for GTC (Good-Till-Cancelled). The GTT provides inactive stock market investors with a way to reduce losses and book profits without actively monitoring the markets. However, GTC continues to offer several functions that GTT does not. If you are an enthusiastic stock market investor, GTT orders may be advantageous. Such orders can assist you in selling all or a portion of the stocks you already have in your demat account at a certain price. Once you sell, you can repurchase the identical equities with a buy order at a lower GTT price. This will potentially get you profits without constantly checking prices.