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Published on Thursday, July 25, 2019 by Chittorgarh.com Team | Modified on Thursday, April 8, 2021
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Good Till Triggered (GTT) allows you to place an order to be sent to the exchange only when the price condition gets met. GTT is a feature introduced by Zerodha to offer a similar service like ‘Good Till Cancelled' (GTC) order offered by most full-service brokers in India.
What is GTT in Zerodha?
GTT in Zerodha means the facility offered by Zerodha to apply Good Till Triggered orders for buy or sell transactions. The orders placed under GTT get executed anytime within one year when the set price gets hit. GTT is available for both buy and sell orders and can be canceled at any time. The GTT feature is very helpful for traders who are unable to constantly monitor their stock market investments. Such traders can set a price for their stock under GTT that will get automatically executed when the price is reached.
Zerodha GTT example
For example, say SBI is currently traded at Rs 186 but you want to buy it for Rs 175. In such a case, you can place a GTT order for SBI and set the price as Rs 175. The order will remain active until the price reaches Rs 175 or 1 year. If the price of SBI shares reaches Rs 175 within a year, then your buy order gets automatically executed. If the price doesn't reach Rs 175 within a year, then your order gets cancelled.
You can also set your GTT trigger price at any desired percentage points away from the Last Trading Price of the share. Continuing our SBI share example, you can set -5% for shares LTP at Rs 186. The order will be executed at (186.0-9.3) = Rs 176.70
Why Zerodha doesn't offer GTC orders?
GTC orders are valid until they are cancelled. These orders are useful for investors who do not track the market daily. With the GTC order, you could simply place an order with the target price and let it be there forever. When the price matches, the order gets executed.
For example, you want to buy Wipro Technologies shares at Rs 200. One option you have is to place a Limit order every day at Rs 200. With the GTC feature, you can place this order once and forget it. Whenever the price reaches, the order will get executed.
Stock exchanges in India don't support GTC orders. For this reason, a broker offering a GTC order has to place the pending GTC orders to the exchange every day in the morning. The orders that do not get executed get cancelled at the end of the day. The placing of pending GTC orders everyday causes technical challenges and increases the cost for the broker as they have a limit of placing 400 messages per second per line.
Zerodha introduced GTT orders on 26th July 2019 for equity delivery traders (CNC orders). It's an excellent substitute for GTC orders which is a very critical trading feature for passive stock market investors.
While this has similarities with GTC orders, they are not as convenient as GTC. There are many things to keep in mind while placing GTT orders with Zerodha. Please read the Zerodha GTT limit section below for more detail.
GTT options Zerodha
Zerodha offers to place a GTT buy or GTT sell order using a Single trigger or OCO (One Cancels the other).
- Single Trigger – In the Single trigger type, you need to set the trigger price and input the order price for the required quantity. The single order gets placed to the exchange as soon as the trigger price gets hit. The single trigger type gets generally used to enter new positions.
- OCO Trigger – OCO stands for One cancels the other. In the OCO trigger type, you need to set the stop-loss and the target trigger price or %. The OCO gets placed with exchange whenever either of the trigger condition gets hit. As the name suggests, when one order gets placed with exchange based on one trigger condition, the other trigger gets auto-canceled. The OCO trigger type gets generally used when you have a target to exit from the existing positions by limiting the losses.
GTT Zerodha Demo
Zerodha GTT Pricing
The GTT orders are offered free of charge. There are no Zerodha GTT charges or Zerodha GTT fees for using the GTT feature in Zerodha.
Zerodha GTT Validity
A Zerodha GTT order remains valid for one year from the date of order placement.
The GTT trigger once hit gets deactivated irrespective of whether the order gets executed or not. In such a case, you need to place the GTT order again as the order gets expired and becomes invalid.
Zerodha GTT Limit
There are certain GTT limits in Zerodha that each investor should be aware of.
- The Zerodha Kite Mobile Trading app has a GTT facility only for stocks for delivery trading. The GTT feature to include Nifty and Bank Nifty futures and options is not yet made available for the mobile version.
- If you place a sell GTT on your securities held in your Demat account then you need to authorize the delivery using CDSL TPIN. The validity of authorization is only for 90 days. This is not required if you've submitted a POA.
- GTT orders are allowed to be placed only during market hours.
- The order is sent to the exchange only when the price reaches the trigger price set. This is unlike GTC where all orders are sent to exchange everyday morning.
- If the trigger price reaches, Zerodha places the order to exchange and removes the order from the GTT queue at Zerodha. In case the order gets canceled for some reason, you will have to place the GTT order again manually.
- GTT orders are to be placed online. They cannot be placed over the call.
- Maximum 50 active GTT orders are permitted per customer.
- Active GTT orders will be in the system for a maximum of 1 year.
- The GTT order gets automatically canceled when there are corporate actions like a bonus, dividend (if greater than 5% of market value), stock split, etc.,
- GTT orders are to be self-managed by the investors. No dealing desk support is offered for GTT orders.
How to do GTT in Zerodha?
Zerodha offers to use the GTT feature through the Kite web and the mobile app.
Steps to Place GTT Orders with Zerodha
- Log in to Zerodha Kite Web/mobile app.
- Choose the stock on which GTT is to be applied.
- On the Kite web, the ‘Create GTT' option is available under ‘…' as displayed above. On the mobile app, the Create GTT option is available above the market depth window.
- Click on Create GTT.
- Fill the order form as below:
- To view the status or add/update GTT order, Go to ‘orders' page and click the GTT tab.
Zerodha GTT Order Advantages
- Orders placed are valid for a year.
- It's a free service by Zerodha.
- Orders get executed only when the trigger price is reached.
- Similar to GTC orders offered by full-service brokers like ICICI.
- No need to place an order every day if you have a buy/sell price at which you want to enter/exit.
Zerodha GTT Order Disadvantages
- GTT is only available in Equity Delivery (Cash and Carry) trades and Nifty and Bank Nifty F&O.
- GTT order can be placed only in the market hours. This is unlike GTC orders which can be placed at any time of the day. This feature is important for NRI customers.
- Once triggered, the order gets removed from the GTT queue irrespective the order got executed or not.
- Maximum 50 GTT orders per customer
- Call and trade feature not allowed for GTT users.
Conclusion
Zerodha GTT order is an excellent offering for passive stock market investors. It still has a long way to go to meet the comfort of GTC orders which most investors find very convenient. Zerodha should look to add more features to bring it at par with GTC.
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