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. The GTT order remains valid for one year for equities. For derivatives, it remains active until the contract expires.
  

• GTT orders are sent to the exchange only when the specified trigger conditions are met. This ensures 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. If these conditions are met, the order is placed with the exchange. However, the order placement is successful only if the account has the required funds or holdings. If this is not available, the order may be rejected at the exchange.

Every time a GTT is triggered and an order is placed on the exchange, traders receive a notification on their 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 the share market is only permitted on the Equity Cash Segment.

Key Features of GTT Orders

• Activates only at your chosen level: GTT will send your order to the exchange 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. They remain active until the trigger condition is met or the validity period expires, which is one year for equities and the contract expiry for derivatives. Certain corporate actions, such as stock splits or bonuses, may also end the GTT. You can also end it by cancelling the order.

• Helps control losses: You can add your stop loss in advance to protect your capital. You can set a limit 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 a 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 placed.

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 shares or Sell GTT to exit shares you already hold. For F&O, you can use GTT for short positions, as well.
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

To place a GTT order to buy below the current market price (CMP), enter a Trigger Price and Limit Price below the CMP.

Let's say Ashok Leyland's CMP is ₹175. Enter ₹160 as the trigger price and ₹161 as the limit price to place a GTT order. The exchange receives a purchase limit order for ₹161 when the CMP reaches the trigger price.

GTT for Sell Order

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

For instance, the CMP of Ashok Leyland is ₹175. The limit price is ₹199, and the trigger price is ₹200 when placing a GTT. The exchange receives a sell limit order for ₹199 when the CMP reaches the trigger price.

Types of Good Till Triggered Features

GTT in share market comes in two categories:

Single trigger: A single trigger price can be used to initiate a target order when the trigger price is higher than the current market price. If the trigger price is lower than the current market price, it can be used to place a stop-loss order.

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 limit 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 placed with the exchange 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?

Some brokers, like Kotak Neo, allow GTT orders on all stocks. A few other brokers may usually allow GTT only on selected stocks that have good liquidity and stable price movement.

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.

Another drawback is that a GTT may be rejected even after the trigger condition is met. The order may be rejected if the required funds, holdings or margin are unavailable. Circuit limits, trade-to-trade restrictions, F&O ban periods or low liquidity can also prevent 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. This 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.
  
• Both Buy GTT OCO and Sell GTT OCO orders can be placed for derivatives. However, equity supports Sell GTT OCO only, as it requires holdings in the account.
  
• 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.
  
• Check how many GTTs can be active in your account at a time. Some brokers may allow unlimited GTTs at a time. Others may set a limit. For example, Kotak Neo allows up to 5,000 active GTTs at a time.
  
• 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 trigger 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 order is cancelled due to a corporate action, traders get an email notification.
  

Conclusion

The GTT provides inactive stock market investors with a way to reduce losses and book profits without actively monitoring the markets. 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.