Zerodha GTT Order (GTC Equivalent) Explained

Published on Thursday, July 25, 2019 by Chittorgarh.com Team | Modified on Wednesday, July 29, 2020

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Zerodha GTT Order (GTC Equivalent) Explained

Good Till Triggered (GTT) order allows you to place an order which is sent to the exchange only when the price condition is met. GTT is introduced by Zerodha to offer a similar service like Good Till Cancelled (GTC) order offered by most full-service brokers in India.

What is GTT in Zerodha?

GTT in Zerodha stands for Good Till Triggered orders. The orders placed under GTT gets executed anytime within 1 year when the set price is reached. GTT can be placed for both buy and sell orders and can be canceled at any time. It is very helpful for traders who are unable to constantly monitor their stock market investments. Such traders can set a price for their stock under GTT and it will get automatically executed when the price is reached.

For example, say SBI is currently traded at ₹186 but you want to buy it for ₹175. In such a case, you can place a GTT order for SBI and set the price as ₹175. The order will remain active until the price reaches ₹175 or 1 year. If the price of SBI shares reaches ₹175 within a year then your buy order will be automatically executed and if the price doesn't reach ₹175 within a year then your order will get canceled.

You can also set your GTT trigger price at any desired percentage points away from the Last Trading Price of the share. Continuing our SBI share example, you can set -5% for shares LTP at ₹186. The order will be executed at (186.0-9.3)= ₹176.70


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 Wipro Technologies 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 / GTC Order Demo in Kite Web

 


Zerodha GTT Pricing

GTT orders are offered free of charge. There are no charges for using the Zerodha GTT feature.


Zerodha GTT Order Limitation

  • GTT is only available in the Equity Delivery segment, Nifty, and Bank Nifty Futures and Options.
  • If you are placing a sell GTT on your securities held in your demat account then you need to authorize the delivery using CDSL TPIN. The validity of authorization is only for 90 days. This is not required if you've submitted a POA
  • 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

  1. Login to Zerodha Kite Web.

    Zerodha GTT Order Explained

     

  2. In the market watch, choose the stock and click on "…"

  3. Click on the 'Create GTT' button.

  4. Fill the order form as below:

    Zerodha Place GTT Order in Kite Web

     

  5. To view the status or add/update GTT order, Go to 'orders' page and click GTT tab

    Zerodha Manage GTT Order in Kite Web

     


Zerodha GTT Order Advantages

  • Orders placed are valid for a year.
  • It's a free service by Zerodha.
  • 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

  • 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

Conclusion

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. Zerodha should look to add more features to bring it at par with GTC.


Read more about Zerodha




Frequently Asked Questions

  1. 1. 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.

     

  2. 2. 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 order can be placed at any point in time. This is a key feature for NRI investors.

     

  3. 3. How to place 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.

     

  4. 4. How do I place 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 GTT queue at Zerodha.

    Example:

    • 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.

     

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7 Comments

Sai kiran
7. Sai kiran  Aug 28, 2020 17:50 I Like It. | I Don't Like It. | Report Abuse Reply
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Manoj
6. Manoj  Jul 21, 2020 10:13 I Like It. | I Don't Like It. | Report Abuse Reply
GTT is showing as Triggered, and meanwhile Rejection reason shows as "10 quantity needs authorisation at the depository." I logged into Zerodha mobile App.
Is it triggered and it will be completed ? Is my order not rejected ?
vishnu
5. vishnu  Jun 24, 2020 07:33 I Like It. | I Don't Like It. | Report Abuse Reply
what are charges for place the GTT currently
Team Chittorgarh.com
5.1. Team Chittorgarh.com  Jun 28, 2020 09:37 I Like It. | I Don't Like It. | Report Abuse
Top Contributor Top Contributor (200+ Posts, 400+ Likes)
Zerodha doesn't charge any fee for GTT orders.

You just have to pay for brokerage and taxes when your buy or sell GTT order gets executed. The brokerage is free for equity delivery trades and max Rs 20 per executed order for intraday and F&O trades.
Ganesh Pathade
4. Ganesh Pathade  Jun 9, 2020 19:48 I Like It. | I Don't Like It. | Report Abuse Reply
I have make gtt for sale. But make errors 19quantities needs authorization at the depository.means what
PJ
4.1. PJ  Jun 25, 2020 12:07 I Like It. | I Don't Like It. | Report Abuse
YOU have to authorised you stock using TPIN
Team Chittorgarh.com
4.2. Team Chittorgarh.com  Jun 28, 2020 09:36 I Like It. | I Don't Like It. | Report Abuse
Top Contributor Top Contributor (200+ Posts, 400+ Likes)
Dear Sir,
The Zerodha TPIN concept is explained here:

https://www.chittorgarh.com/article/zerodha-cdsl-tpin-pre-authorise-sell-from-demat/473/

Note: Your TPIN authorization is valid for 90 days.
Poonam
3. Poonam  Mar 4, 2020 09:52 I Like It. | I Don't Like It. | Report Abuse Reply
Hi - i have invested with a long time view and had created sell GTT with certain price. I was not fully aware of the feature and i am still not. Now when market is falling so badly i am afraid that it may trigger, though i changed GTT few times to further lower value. Would like to know how can i completely remove GTT from my holdings.
Please guide. Thank you
Team Chittorgarh.com
3.1. Team Chittorgarh.com  May 26, 2020 15:54 I Like It. | I Don't Like It. | Report Abuse
Top Contributor Top Contributor (200+ Posts, 400+ Likes)
Dear Poonam,

You could cancel your GTT order just like you cancel any other order. Once canceled, the order will be removed from the queue.
Swapnil
2. Swapnil  May 26, 2020 14:57 I Like It. | I Don't Like It. | Report Abuse Reply
Do we need to have amount in zerodha to create gtt order..eg if I want to buy a share at RS 100 of 10 quantity and create gtt for the same, but I don't have enough cash in zerdha account. So will my order execute
Team Chittorgarh.com
2.1. Team Chittorgarh.com  May 26, 2020 15:51 I Like It. | I Don't Like It. | Report Abuse
Top Contributor Top Contributor (200+ Posts, 400+ Likes)
Dear Mr. Swapnil,
You don't need funds in the account while creating GTT but you need them when the order gets executed.

Zerodha checks funds in your account when the GTT trigger price arrives and Zerodha sends your order to the exchange. If you don't have enough funds in your trading account at that time, your GTT order is canceled.

Deepa
1. Deepa  Dec 18, 2019 11:19 I Like It. | I Don't Like It. | Report Abuse Reply
After GTT order is placed by customer, What happens if one delete the GTT order.?
Team Chittorgarh.com
8.1. Team Chittorgarh.com  Jan 10, 2020 14:30 I Like It. | I Don't Like It. | Report Abuse
Top Contributor Top Contributor (200+ Posts, 400+ Likes)
Hi Deepa,
Once the GTT order is triggered or deleted, it is gone from the GTT order queue. You will have to create a new order altogether.

When the GTT order is triggered, the order is sent to the exchange and deleted from the GTT order queue. The order remains with an exchange for 1 trading day (same day). If it doesn't get executed, it is also get deleted from the exchange order list. In this case, you have to place a new GTT order.









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