Summary of "How to place Good Till Triggered (GTT) orders | A Complete Guide"

How to Place Good Till Triggered (GTT) Orders | A Complete Guide

Key Concepts

GTT Orders: Unlike regular market orders that expire at the end of the trading day, Good Till Triggered (GTT) orders remain active for up to 365 days. This allows investors to set buy or sell orders at desired prices without needing to place them daily.
Use Cases: GTT orders are ideal for investors with busy schedules who cannot constantly monitor the markets. They can be used to set stop-loss and target prices for stocks and derivatives.

Types of GTT Orders

1. Single Trigger GTT

Set one trigger price.
When the market price hits this trigger, the order is placed automatically.
Suitable for entering or exiting a position at a specific price.
Example: Buy Reliance Industries (Ticker: RELIANCE) shares with a trigger price of ₹1205 and an order price of ₹1200.
Only one trigger—either stop-loss or target—can be set, not both.

2. One Cancels Other (OCO) GTT

Allows setting both stop-loss and target orders simultaneously.
When one trigger price is hit, the corresponding order is executed and the other is canceled.
For stocks, only sell OCO GTT orders are allowed.
For Futures & Options (F&O), both buy and sell OCO GTT orders can be placed, supporting management of long and short positions.
Can be set at the time of buying stocks or entering F&O positions.
Works for long-term and overnight product types.

How to Place GTT Orders

Use the Kite app or web platform.
Select the instrument from market watch or portfolio holdings.
Choose “Create GTT” and select the order type (buy/sell) and trigger type (single or OCO).
Enter the trigger price (can be absolute or percentage-based), order price, and quantity.
For OCO orders, set both stop-loss and target trigger prices and quantities.
Swipe to confirm the order.

Order Execution Details

When triggered, a limit order is placed.
Buy orders execute at the limit price or lower; sell orders at the limit price or higher.
To improve execution chances, set the buy order price slightly above the trigger price and the sell order price slightly below the trigger price. This mimics a market order while protecting the price.

Important Notes & Limitations

GTT orders remain active for up to 1 year unless canceled or triggered.
GTTs are canceled automatically in case of corporate actions like stock splits or bonuses.
GTT orders can be placed anytime but only trigger during market hours.
Order history for GTTs is visible only on the day they trigger.
A maximum of 250 active GTT orders are allowed per user.
Daily authorization of holdings via CDSL (Central Depository Services Limited) is required to avoid order rejections.
Demat Depository Participant Instruction (DDPI) submission is necessary; a separate video explains this process.

Disclaimers

Investments in securities markets are subject to market risks. Investors should read all related documents carefully before investing. Brokerage charges will not exceed SEBI prescribed limits. The video content is educational and not financial advice.