The term GTT stands for Good Till Triggered and allows you to set a trigger price an order. This implies that an order will be placed if and when your specified price (trigger price) hits a future date. The same theory holds good with the Zerodha GTT orders.
Zerodha introduced the concept of GTT in July 2019. Besides, Zerodha GTT applies only to CNC orders.
Besides, GTT orders are good for passive investors.
If compared to GTC (Good Till Cancelled) orders, GTT is a slightly complex procedure of order execution. One has to be very particular about certain things while placing a GTT order.
GTC orders are best suited to those investors who do not track the market regularly. This is because such orders can be placed with a target price and can be left like that. Whenever the price matches the set target price, the order will be executed.
Zerodha does not deal with GTC orders because of Indian stock exchange does not support such orders. This means that a broker offering GTC will have a tough time with the pending orders.
This is because all the pending orders have to be placed in the exchange by the end of the day.
Zerodha GTT Order
GTT, as its full form suggests, is a trigger that places a limit order at your selected price when the trigger price is met.
Here is the complete information about the order execution. Dive in to learn more.
Zerodha GTT Order Not Executed
For a Zerodha GTT order, the set trigger is valid only once. Any non-execution due to whatever reason will require you to place the order again.
Also, if the Last Traded Price (LTP) of a scrip tends to be higher than the selected trigger price, the order will be placed at the selected limit price. The same thing will happen if the LTP breaches the trigger price due to a gap up or gap down.
This simply means that while using GTT with a limit price, order execution is not guaranteed. This is because the LTP could have changed if the order is placed post-trigger.
If the trigger price gets breached someday and the selected limit price is not met on that same day, all the orders will be canceled by the end that trading day itself.
Note that your Zerodha GTT order may not be executed if it involves any risks in terms of internet trading and capital markets. Zerodha is registered with SEBI and is a member of NSE & BSE. Hence, all SEBI specified rules shall be followed.
You must ensure to thoroughly read and understand the terms and conditions that you agreed to while opening your Zerodha trading account.
Some Drawbacks Of Zerodha GTT
Before indulging in Zerodha GTT orders, you must consider these things.
You can avail of Zerodha GTT only in equity delivery
There is no provision for placing GTT orders on call
You can place GTT orders only during the market hours
Zerodha cancels your GTT orders automatically in cases of bonus, stock split and dividend (if 5% greater than the market value)
A maximum of 50 active GTT orders is allowed to each client and the active orders remain in the system for just one year
How to place a Zerodha GTT order?
Login to the Kite Web
Choose a stock in the market watch and click on the icon with three dots. A drop-down menu will appear.
From the drop-down menu, select “ create GTT”.
A form will appear. Click on buy and fill the trigger price, price, and quantity.
Review the filled form and hit the create button. That’s all you need for placing a GTT order.
To view/update your order, go on the “Orders” page and click on the GTT tab.
Zerodha GTT Charges
All Zerodha GTT orders are free for the first 3 months. This is an introductory offer, hence you can place GTT orders for free during this specified tenure.
Post this tenure, the Zerodha GTT pricing for orders shall be solely decided by the broker only. As of now, there’s no fixed price for the same and may vary for individuals.
The best part of GTT is that you need not place the order every day if you have a fixed price at which you want to exit or enter.
Zerodha GTT has offered a great investing platform, especially for passive investors. Considering that it was launched just in July 2019, Zerodha GTT has become quite popular. The statistics would have been even better if Zerodha GTT was totally free and was available on Kite mobile.
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