If you are a stock investor who doesn’t want to track or place orders every day for a stock that you’re interested in, then you can use an automation technique called GTT in Zerodha to automate the stock’s buying or selling process.
Let’s discuss that in detail.
What is GTT in Zerodha Kite
Good Till Triggered is an automatic order mechanism in Zerodha Kite that gets triggered when certain conditions defined by investors are met.
Simply, you can use the GTT to execute an order that would remain active in the exchange until the defined condition is met or till the validity of the GTT which is one year.
How to Place GTT in Zerodha
You can go to the “Orders -> GTT” section in your Zerodha Kite dashboard to place the GTT orders. You can execute two types of GTT orders in Zerodha – By GTT and Sell GTT.
Sell GTT order further has two types –
- Sell GTT Single
- Sell GTT OCO
#1. Buy GTT Order
Buy GTT is a trigger that you can create to buy stocks for delivery orders. When the stock price reaches the trigger price in the buy GTT order, a buy order with the desired limit price is placed.
For example, you want to buy 10 ITC shares at Rs. 305 per share but the ITC share’s Last Traded Price (LTP) is 309.50.
Now you can place a trigger of 305.00 and set quantity of 10, when the trigger is met on the exchange, a buying delivery order (CNC) will be placed. See the snapshot.
#2. Sell GTT Order
You can use Sell GTT order to sell current stock holdings from Zerodha demat account, it could be of two types –
I. Sell GTT (Single)
Similar to buying a GTT order, when the stock price reaches a set trigger price, the selling order is executed.
For example, if you have ITC stocks in your holdings that you want to sell at 324.95, however, the current price of Reliance is 309.50.
Now when the trigger price of 324.95 is met, a selling CNC (delivery) order is placed.
II. Sell GTT – OCO (One cancels Other)
In OCO, you use both the stop-loss and target orders, where triggering one out of both will cancel the other.
For example, if you have ITC stocks in your holdings that you want to sell at 324.95, however, the current price of Reliance is 309.50. Now when the trigger of 324.95 is met, a selling CNC order is executed.
But you can also place a stop-loss order at 294 with a target price of 324.95 to avoid the risk of loss if the share price falls sharply.
In this case, if either of the target or stop-loss trigger conditions are met, a selling CNC order is placed while canceling the other condition.
Important Terms to Know
#1. GTT Order Validity
GTT order has a validity of 365 days (1 year) from the date of order is placed.
Whenever the GTT trigger is hit and an order is placed to the exchange, the trigger gets deactivated automatically.
#2. GTT Order Charges in Zerodha
No charges. GTT order facility is free of cost in Zerodha.
#3. Are GTT Orders Available for F&O Contracts
Yes. you can set GTT orders in F&O but the GTT gets expired when the F&O contract expires.
However, GTT orders are not available for Currency and Commodity trading.
Conclusion
GTT is a revolutionary tool available for investors in the Zerodha kite trading app. You have to keep in mind that you can set a maximum of 100 GTT orders allowed at one time per account.
You can place a GTT order anytime but the order is placed only during the market hours of the next trading day.
