What is GTT Order (Good Till Triggered): Uses & Types

GTT (Good Till Triggered)

 If you are a new trader or an experienced person, you certainly seen the terminology called GTT. You probably saw this option during any transaction. GTT or Good Till Triggered is a feature in the share market that is generally used during buy and sell any stocks. In the most simple terms, Good Till Triggered allows you to purchase and sell the share at your preferred price without constantly tracking the prices throughout. It will automatically execute the sale when your desired price is met.

Example

Let’s understand this with an example. You want to buy stock ABC at INR 100 but the current market price is 110 rupees. 

So you should GTT at the price of 100 rupees and limit the price to 105 rupees. In the case of selling Wipro at 150 rupees, set the GTT at INR 150 and put the limit price at 147 rupees.

But have you tried this feature before? Well, here we’ll share everything about Good Till Triggered, right from its types, uses, and benefits to how exactly you can place the GTT order. So stay tuned with us till the end.

Types Of GTT (Good Till Triggered)

There are two types of GTT. Both the GTT and the GMI have their benefits, investors should use them according to their goals.  So, before you start using Good Till Triggered, you must know its purpose first. The two types are,

Single Trigger

As the term is called single, investors can only put one trigger price to place the order. The purchase will be executed when the LTP (Last Traded Price) matches the trigger price. This type of GTT is used to enter and also to exit the position.

OCO Trigger

OCO trigger or One Cancel Other GTT, is ideal when an investor wants to sell a stock and avoid a loss at the same time. Additionally, if investors want, you can place two orders at the same time; the OCO trigger is the best option. This Good Till Triggered requires 2 entry prices, when one is met the other one will automatically get cancelled. Here you also get an option to stop loss.

 Both the GTT and the GMI have their benefits, investors should use it according to their goals.  

Uses Of GTT (Good Till Triggered)

There are some common reasons why investors prefer using this feature to make any purchase or sell any stocks. Here are the uses,

1. In terms of protecting your stocks from huge losses, use the stop-loss feature.
2. Setting a target price to receive the desired profit. 
3. Long-term investors generally follow fundamentals, and they use this feature to enter new stocks at their desired price.
4. Using Good Till Triggered, investors can do risk-free trading during a volatile market as well. 
5. When an investor wants to purchase two stocks at the same time, one is for the long-term and another is for the short-term, this GTT feature can be extremely useful.

Benefits Of GTT

As an investor in the stock market, if you’re unaware of the new features and updates, your journey will be full of hassle. But using Good Till Triggered can protect you from having those unwanted hassles. So, know the benefits of this feature before using it.

Customisation

With the help of good till trigger option investors can customize their purchase. They can set a price according to their risk tolerance level. Aside from this there will be options for limit orders, stop orders, market orders and so many others. 

Protects From Risk

As we mentioned earlier, Good Till Triggered gives you flexibility with stop-loss and take-profit features, therefore, investors can easily avoid unwanted risks in the stock market. During a volatile market condition, it can work like a saviour for you.

Controls Emotion

Whenever the market fluctuates a lot, we human beings tend to get puzzled and make wrong decisions. But when you start using this GTT order feature, you learn to stay strict with your strategy and always end up making profits. 

Automation

For people who are unable to constantly check the market conditions or check the prices of individual stocks all the time, this Good Till Triggered feature is the best for them. During the market hours, whenever you get a couple of times, you can set the prices and it will automatically initiate the purchase at your selected price. Constant monitoring consumes a lot of your valuable time and effort, but with the help of GTT, you can also save that and get a convenient experience of trading.

Order Management

As you can set a specific price level from an early stage, you can place your order and make a profit from it with an ideal management strategy. Without using Good Till Triggered, investment becomes messy, especially for new investors.

How To Place The GTT Order

The process of placing a GTT order always depends on the platform you’re using. But the steps are almost the same. There are two categories, one is stand-alone and the one is base order. 

Steps for a stand-alone

• To set GTT for a specific stock, first, you need to identify that and start setting it.
• Next, tap on ‘Create GTT’ and enter all the required details.
• Once it’s done, the execution will automatically happen once the desired price is met. 

Steps for a base order

• Choose the stock first.
• Click on buy or sell on that particular platform.
• Fill up details like stop-loss leg & profit-let.
• The order is placed. 

Bottom Line

This automation process is relaxing for every new and experienced trader. So, whether you want to limit loss, gain more profits, and adjust to the volatility of the market, this GTT order strategy can make the process extremely convenient for all.  If you have used this feature earlier, we hope our given information, like types, uses, benefits, and the process of utilising the Good Till Triggered feature, will clear all your doubts, and from now on you can enjoy trading without thinking of any risk factors.

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Disclaimer – This article is for educational purposes only and does not intend to substitute expert guidance. Mutual fund investments are subject to market risks. Please read the scheme-related document carefully before investing.