Zerodha GTT Order Explained
Table of Contents
- Why Zerodha doesn't offer GTC order?
- Zerodha GTT Orders
- Zerodha GTT Pricing
- Zerodha GTT Order Limitation
- Steps to Place GTT Orders with Zerodha
- Zerodha GTT Order Advantages
- Zerodha GTT Order Disadvantage
- Zerodha GTT Orders - Frequently Asked Questions
GTT stands for the Good Till Triggered order which allows you to place an order which is sent to the exchange only when the price condition is met. GTT is introduced by Zerodha and it is equivalent to the Good Till Cancelled (GTC) order offered by most full-service brokers in India.
Why Zerodha doesn't offer GTC order?
GTC orders are valid until they are canceled. These orders are useful for investors who do not track the market daily. With the GTC order, you could simply place an order for with target price and let it be there forever. When the price matches, the order gets executed.
For example; I would like to buy ITC Shares at ₹200. One option I have is to place a limit order every day at ₹200. With GTC, I can just place this order and forget it. Whenever the price reaches, the order will get executed.
Stock exchanges in India don't support GTC order. For this reason, a broker offering GTC order has to place the pending GTC orders to the exchange every day in the morning. The orders which are not executed are canceled by the exchange at the end of the day.
The placing of pending GTC orders everyday causes technical challenges and increases the cost for the broker as they have a limit of placing 400 messages per second per line.
Zerodha GTT Orders
Zerodha introduced GTT orders on 26th July 2019 for equity delivery traders (CNC orders). It's an excellent substitute for GTC orders which is a very critical trading feature for passive stock market investors.
While this has similarities with GTC orders, they are not as convenient as GTC. There are many things to keep in mind while placing GTT orders with Zerodha. Please read the GTT order limitation section below for more detail.
Zerodha GTT Pricing
GTT orders are offered free of charge for the first 3 months to Zerodha customers. Zerodha is planning to announce the pricing of GTT orders soon.
Zerodha GTT Order Limitation
- GTT is only available in the Equity Delivery segment.
- GTT is only available on Kite Web. It is not available in Kite Mobile.
- GTT orders can be placed only during market hours.
- The order is sent to the exchange only when the price reaches the trigger price set. This is unlike GTC where all orders are sent to exchange everyday morning.
- If the trigger price reaches, Zerodha places the order to exchange and remove the order from the GTT queue at Zerodha. In case the order gets canceled for some reason, you will have to place the GTT order again manually.
- GTT orders have to be placed online. They cannot be placed over the call.
- Maximum 50 active GTT orders are permitted per customer.
- Active GTT orders will be in the system for a maximum of 1 year.
- The GTT order will be canceled automatically when there are corporate actions like a bonus, dividend (if greater than 5% of market value), stock split, etc.,
Steps to Place GTT Orders with Zerodha
Login to Zerodha Kite Web.
In the market watch, choose the stock and click on "…"
Click on the 'Create GTT' button.
Fill the order form as below:
To view the status or add/update GTT order, Go to 'orders' page and click GTT tab
Zerodha GTT Order Advantages
- Orders placed are valid for a year.
- Orders get executed only when the trigger price reached.
- Similar to GTC orders offered by full-service brokers like ICICI.
- No need to place an order every day if you have a buy/sell price at which you want to enter/exit.
Zerodha GTT Order Disadvantage
- It's a paid service by Zerodha.
- GTT is only available in Equity Delivery (Cash and Carry) trades.
- GTT order type is only available Zerodha Kite Mobile Trading App.
- GTT order can be placed only in the market hours. This is unlike GTC orders which can be placed at any time of the day. This feature is important for NRI customers.
- Once triggered, the order gets removed from the GTT queue irrespective to order got executed or not.
- Maximum 50 GTT orders per customer
Zerodha GTT order is an excellent offering for passive stock market investors. It still has a long way to go to meet the comfort of GTC orders which most investors find very convenient. Additionally, like full-service brokers, Zerodha should make it free and launch it on its mobile app.
Zerodha GTT Orders - Frequently Asked Questions
What is Create GTT in Zerodha?
Good Till Triggered or GTT is an order which is active till the set price is reached. It is valid for 1 year. The order gets automatically executed by the system when the set price by the trader is reached. The GTT orders are good at minimizing losses or to book profits when you are not actively tracking the markets.
Can I place Zerodha GTT orders after market hours?
No, GTT orders can be placed only in the market houses.
This is unlike GTC orders (Good till Canceled) offered by full-service brokers like ICICI. GTC orders can be placed at any point in time. This is a key feature for NRI investors.
How to place the GTT order on Zerodha Kite Mobile App?
GTT orders are only available on Zerodha Kite Web. You cannot place GTT orders on Zerodha Kite Mobile App.
How do I place the Zerodha GTC order in Kite?
Zerodha doesn't provide Good Till Cancelled (GTC) Orders. Instead of GTC, it provides Good Till Triggered (GTT) Orders. GTT orders are available in Zerodha Kite Web only.
In GTT order you specify 2 prices; a trigger price and the order price. The order is placed to the exchange when the trigger price is reached. The order remains with the exchange for a day and gets executed when the stock price matches the order price. If the doesn't get executed in a day, the order gets canceled at the exchange as well as removed from the GTT queue at Zerodha.
- Stock: Infy
- Current Price: ₹785.75
- GTT Trigger Price: ₹701
- GTT Order Price: ₹700
- GTT Order Quantity: 100 Shares
Scenario 1 : After 10 days from placing the order, Infy share price reached to ₹701. Zerodha will now place the order to the exchange. If the price reaches ₹700, the order will get executed.
Scenario 2 : In Scenario 1, if the price didn't reach ₹700, the order will be canceled at the exchange by end of the day. The GTT order will also be removed from Zerodha GTT pending order list. This is unlike GTC where order remains in the system until it executed.
Scenario 3 : If the share price doesn't reach the trigger price for 1 year, the order will be removed from the GTT Pending Order queue.
Scenario 4 : If corporate actions like a bonus, dividend (if greater than 5% of market value), stock split, etc. are announced for Infosys, the GTT order will be removed for the GTT Pending Order queue. make it free and launch it on its mobile app.