What is a GTT order? How does it work?

What is a GTT order?

• 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.

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.

Using The Good Till Triggered (GTT) Feature on Kotak Neo

• Go to Orders -> GTT. Or select “Create GTT” from the info page for any scrip/stock.
• Select Buy/Sell order.
• Enter the Quantity.
• Enter the Trigger price (price at which the GTT becomes active and is sent to the exchange)
• Enter the Limit price
• Select the Product type – Cash/NRML/Pay Later(MTF)
• Place the order.