Zerodha GTT Order Overview
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GTT is the abbreviation for Good Till Triggered. This is an initiative from Zerodha and that is why it is referred to as Zerodha GTT Order. Zerodha platform considered it necessary to use the new Zerodha GTT Orders to replace Zerodha GTC Order which had been around for a while.
Zerodha GTC Order
GTC is the short form or abbreviation for Good Till Cancelled types of Orders. It is one of the most sought after among all the features and has been in use until the introduction of GTT by Zerodha.
Zerodha GTC Order remains valid until it is decided to be cancelled.
How Zerodha GTC Order Works
Generally, Zerodha GTC order is used when someone wants to place or initiate a target and stop-loss order.
But the shortcoming of this type of order is that at the closure of daily trading, the exchange will cancel all pending orders.
The means that brokers who are offering GTC orders to their customers must keep repeating the orders every day when the market reconvened in the morning.
This arrangement doesn’t augur well with the stockbrokers because there is always the need to place a series of orders only on limited messages on each line connectivity each morning the market reconvened for trading.
The most challenging part of the GTC order arrangement is that each of the brokerage firms in India is granted only 400 messages per line in one second by the exchange, which may not be enough to accommodate all the transactions of that day.
Again, there is a very high operation risk associated with substituting orders daily.
All these problems and challenges led to the launching of the new Zerodha GTT order as a ground-breaking substitute for the former Zerodha GTC Order.
Different Types of GTT Orders Available
1. The Sell GTT: The purpose of Sell GTT is to go out of the existing stock holdings for a target or stop-loss order where the triggering of one will revoke the other.
2. The Zerodha Buy GTT: The Buy GTT is designed for triggers creation to purchase stocks for delivery. As far as this type of order is concerned, the inputted limit price is placed on the exchange immediately the price triggered is reached.
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Indispensable Facts about the New Zerodha GTT Orders
As mentioned earlier, Zerodha GTT Orders are a new ground-breaking idea from Zerodha.
Here are some things you need to understand about Zerodha GTT Orders:
1. With this new initiative, customers now have the chance to place one leg triggers if they want to exit or enter the stock holdings pending when their market condition is fulfilled.
2. At the same time, you can also place both stop loss and target for your entire stock holding, all at the same time.
3. In Zerodha GTT Order, it is important to understand that a GTT can only be executed when the limit price order that was placed is met on the exchange when that GTT is triggered.
Therefore, you must ensure that the limit price you placed is more than the trigger price for buy GTT orders, with the sell limit price reduced than that of the sell trigger price for the sell GTT orders, to guarantee execution.
4. You must also understand under this new development that all the orders will only be placed and triggered when the market is in operation.
5. Moreover, it is noteworthy that all Zerodha GTT Orders that were placed at the exchange by those GTTs that trigger can only be filled if you have sufficient money for the buys and if the stock balance you have in your DEMAT account for the transaction in question can accommodate it on the exchange.
6. It is very important to note that Zerodha GTT orders can only be placed on the Zerodha KITE Web. This simply means that you cannot use GTT Order Zerodha App to place GTT orders on Zerodha KITE Mobile App.
7. You can only avail of this ample opportunity on the CNC (equity) delivery trades on the stocks that are listed on the platform of BSE and NSE. As of now, GTT is only available on the Kite web, but hopefully, the GTT order Zerodha app will soon be launched on the Kite 3 app.
8. The highest number of active GTTs you can place simultaneously on one account is fifty.
Zerodha GTT Order Charges
For now, Zerodha GTT orders are offered for FREE to all customers who are on the Zerodha platform. This opportunity is available for three months because the platform is still an introductory offer.
How to Manage Your Zerodha GTTs
Managing your GTTs is crucial to successful trading. Therefore, you can manage all the GTTs placed by you below the GTT tab on the Orders page of Kite.
Margins and GTT Creation on Zerodha Platform
Creating a GTT on the Zerodha platform doesn’t require you to have margins or cash in your trading account.
It is only when your GTT is triggered and when you are required to place an order on the exchange that the system checks for margins.
It is by this time that you are expected to have a margin available.
The Validity of Zerodha Good Till Triggered Order
1. Any GTT trigger can only be valid for one time. Therefore, you have to re-place a GTT order manually, if the order fired by a GTT was not filled at the exchange due to one reason or another.
2. The validity of a Good Till Triggered order is for a year only. Therefore, such a GTT will be void if it is not triggered within a year. Consequently, you will have to place the GTT manually again if necessary.
3. GTTs for corresponding stocks are void before the expiry date, any time there is a corporate action, such as dividend, stock split, and bonus among others, if it is greater than 5 per cent.
It then means that after the corporate action, you will have to repeat the GTT order manually.
The reason for cancelling Zerodha GTT orders is to ensure that such orders are not in any way triggered by movement in the stock price which may be as a result of the activities of the management.
Read Also: Zerodha Brokerage Charges
The Zerodha GTT Order is the innovative and new replacement for the former Zerodha GTC order or Good Till Cancelled Order. The experience has been remarkable since its launch.
With Zerodha GTT Orders (Good Till Triggered), you are at liberty to place just one leg triggers to gain entry or exit the stock holdings pending when your price stipulation is met.
Plus, you have the power to concurrently place both target and stop loss for all your stock holdings.
Being a new development, GTT Order Zerodha App is Free for the next three months, after which the platform will ask Zerodha GTT charges known.
This new solution saves time because you don’t have to login daily to place orders. Zerodha GTT orders will also save you money because you will always have stop-loss readily available when your investment does not work as you have planned.
Stockquantum was founded by Dharmendra Mukati in 2018. I am a Trader and Investor in the last 10 years.
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