Good Till Triggered (GTT) Orders Explained: How to Automate Your Stock Market Trades
- What is a Good Till Triggered (GTT) Order in the Share Market?
- What Are the Different Types of GTT Orders?
- How Do You Place a GTT Order? (Step-by-Step Guide)
- What Are the Key Benefits of Using GTT Orders?
- What Should You Consider When Using GTT Orders?
- Frequently Asked Questions About GTT Orders
Good Till Triggered (GTT) orders are a powerful tool for stock market traders, allowing you to set automated buy or sell orders that activate only when specific price conditions are met. This article dives DEEP into GTT orders, covering their meaning, types, benefits, and step-by-step instructions for placing them. Whether you're a beginner or an experienced trader, GTT orders can help you manage risk, maximize profits, and trade more efficiently without constant market monitoring.
What is a Good Till Triggered (GTT) Order in the Share Market?
A Good Till Triggered (GTT) order is a specialized order type in the stock market that lets you automate trades based on predefined price conditions. Unlike regular limit orders, GTT orders remain dormant until the stock reaches your specified trigger price. For example, if you want to buy a stock currently trading at ₹120 but only when it drops to ₹100, you can set a GTT order with ₹100 as the trigger. The order will activate automatically when the price hits ₹100, placing a limit order at your desired price.
GTT orders are particularly useful for:
- Investors who can't monitor the market constantly
- Traders looking to set stop-loss or take-profit levels
- Those who want to maintain trading discipline by removing emotions from decisions
- Swing traders who want to capitalize on price movements while away from screens
- Long-term investors who want to accumulate stocks at specific price points
What Are the Different Types of GTT Orders?
There are two primary types of GTT orders that cater to different trading strategies:
1. Single Trigger GTT Order
The Single Trigger GTT is the simpler version, activating when a stock reaches your specified trigger price. Once triggered, it places a limit order at your predetermined price. This type is ideal when you have a specific entry or exit point in mind.
Example use cases:
- Buying a stock when it drops to a support level (e.g., ₹500)
- Selling a stock when it reaches a resistance level
- Setting a stop-loss order below your purchase price
- Automating dividend reinvestment at target prices
- Building positions gradually at predetermined price points
2. One Cancels Other (OCO) GTT Order
The OCO GTT is more advanced, allowing you to set two trigger conditions simultaneously - typically a target price and a stop-loss price. When one condition is met, the other is automatically canceled.
Example scenarios:
- You own shares at ₹200 and set both ₹220 (take-profit) and ₹180 (stop-loss) triggers
- Swing trading with defined risk-reward parameters
- Protecting profits while allowing for upside potential
- Managing volatile stocks with clear exit strategies
- Implementing bracket orders for disciplined trading
How Do You Place a GTT Order? (Step-by-Step Guide)
Placing a GTT order is straightforward across most trading platforms. Here's a detailed walkthrough:
- Log in to your trading account through your broker's app or website
- Search for the stock you want to trade
- Select "Good Till Triggered" from the order type options
- Enter your trigger price (the price that activates the order)
- Specify your limit price (the price at which the trade executes)
- Input the quantity of shares you want to buy/sell
- Review all details carefully
- Submit the order
Your GTT order will remain active until: - It gets triggered - You cancel it manually - It expires (typically after 1 year)
How to Place a GTT Order on the FYERS App
The process on FYERS is similar but with platform-specific navigation: 1. Open the FYERS app and log in 2. Go to the "Orders" section 3. Select "Create GTT Order" 4. Fill in the required details 5. Confirm and place the order
What Are the Key Benefits of Using GTT Orders?
GTT orders offer numerous advantages that can enhance your trading strategy:
1. Trade Automation
GTT orders eliminate the need for constant market monitoring. You can set your trading parameters once and let the system execute them automatically when conditions are met.
2. Superior Risk Management
By setting stop-loss triggers, you can limit potential losses during market downturns. This helps maintain trading discipline and protects your capital.
3. Profit Maximization
Take-profit triggers ensure you lock in gains at predetermined levels, preventing you from missing profitable exits due to market fluctuations or absence.
4. Enhanced Convenience
GTT orders make trading more efficient by removing the need for manual intervention. This is especially valuable for part-time traders or those with other commitments.
5. Strategic Flexibility
GTT orders work for various strategies: - Short-term trading - Long-term investing - Swing trading - Position building - Portfolio rebalancing
6. Emotional Discipline
By setting conditions in advance, GTT orders help avoid impulsive decisions driven by fear or greed during market volatility.
7. Extended Validity
Most GTT orders remain active for up to one year, making them ideal for longer-term strategies without frequent order renewal.
What Should You Consider When Using GTT Orders?
While GTT orders are powerful, there are important factors to keep in mind:
- Gap Risk: In fast-moving markets, prices can gap through your trigger point, potentially resulting in worse execution than expected
- Partial Fills: Your order might not get fully executed if there's insufficient liquidity at your limit price
- Order Priority: GTT orders don't have time priority until they're triggered and become active limit orders
- Broker Support: Not all brokers offer GTT functionality, especially for all order types
- Market Conditions: GTT orders work best in markets with normal volatility - extreme conditions may lead to unexpected outcomes
Frequently Asked Questions About GTT Orders
What does GTT stand for in trading?
GTT stands for "Good Till Triggered," referring to an order that remains dormant until a specified trigger price is reached, at which point it becomes an active limit order.
How long does a GTT order last?
Most brokers maintain GTT orders for up to one year, though this can vary by platform. Check with your specific broker for their GTT order validity period.
Can I modify or cancel a GTT order?
Yes, you can typically modify or cancel a GTT order at any time before it gets triggered, through your broker's trading platform or app.
What's the difference between GTT and stop-loss orders?
While both are conditional orders, a stop-loss becomes a market order when triggered, while a GTT becomes a limit order. This gives you more price control with GTT orders.
Are there any fees for GTT orders?
Most brokers don't charge extra for GTT functionality, but standard brokerage fees apply when the order executes. Always verify with your specific broker.
Can I place GTT orders for all stocks?
Most liquid stocks support GTT orders, but some brokers may restrict them for highly volatile or low-volume stocks. Check your broker's specific limitations.
