GTT in Zerodha Kite (Zerodha GTT guide)

A GTT order in the share market enables traders to automatically execute their trades based on predetermined conditions. In simpler terms, GTT trading allows you to buy or sell shares at your desired price.

The GTT feature is useful for investors who do not trade actively or do not have time to track the markets daily. Such investors can put a GTT order at their target price in mind and do not bother to input the order daily. However, there are certain GTT limitations that one should keep in mind. Read the section on the GTT limit in Zerodha to know more about this.

A Good till triggered is valid for a year. It places and executes a limit order with sufficient funds. For each triggered GTT order, notifications are sent to the registered email ID and mobile device.

Key Features

• GTT orders are specific to Zerodha only. No other brokers offer this feature.
• GTT is an alternative to GTC orders, as explained below.
• The GTT order must be replaced if it is not executed after being placed once.
• GTT only applies to CNC orders in Equity Cash and NRML orders in Equity Derivatives.
• An account can have a maximum of 250 active GTTs simultaneously.
• GTT order history is visible only on the day it's triggered.
• Zerodha clients must place, cancel, or modify GTT orders independently as Zerodha Customer Support does not support GTT.
• GTT orders are only placed during market hours but you can create the order at any time of day.

There are two types of GTT Features:

• Single trigger: Set a single trigger price that can trigger a target order (if LTP is higher) or a stop loss order (if LTP is lower) compared to the current market price.
• “OCO”—One cancels the other. Set target and stop-loss prices for stocks already in your holdings. Set two trigger prices—one above and one below the current market price.

GTT Feature as a Service

"GTT" is a feature in Zerodha that sets trigger conditions. Once met, a pre-set limit order is placed on the exchanges. No actual order is placed until conditions are met, so you can be sure the order is only placed when specified conditions are met.

To ensure the sucdon't successful triggering of GTT orders, maintain sufficient cash balance and required holdings. If you have enough, your GTTs may be cancelled by Zerodha and Zerodha RMS.

Important points to remember regarding GTT (Good Till Triggered) orders:

• Orders may not be executed even if trigger conditions are met due to the GTT feature.
• A single GTT trigger is valid for only one time, after a limit order is placed.
• If a GTT is triggered for a derivative contract and the order is placed outside of the contract's "execution range," the exchange may cancel it.
• The order may be rejected if a GTT is triggered for an option contract that Zerodha does not allow for trading.
• Pending GTTs for derivative contracts will be invalidated one day after the expiry of the contract.
• You are responsible for checking for pending GTTs before placing new orders for the same scrip.
• Scrips falling under the Call Auction list by NSE are not to be used under the GTT Feature.
• GTTs will be cancelled after 365 days if they are not triggered.

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GTC Vs GTT Orders

GTC (Good Till Cancelled) is an advanced order type that remains valid till it is executed or cancelled by the customer. GTC orders get released to exchange daily. If the order doesn't get executed on that day, the same order gets placed on the exchange the next day. This process of order placement to exchange continues till the order gets executed, cancelled by the investor, or expires.

The maintenance of GTC orders and their daily placement on the exchange is costly, making it difficult for discount brokers to offer this service. Zerodha does not provide GTC facilities to its customers. To overcome this challenge, Zerodha launched. GTT orders as an alternative to GTC.

GTT in Zerodha remains valid for one year or till the trigger condition is hit. Unlike GTC, GTT orders get placed to the exchange only when the set trigger condition gets hit.

The execution of the order is not guaranteed as it is dependent on the order price. In such a case, the GTT order needs to be placed again.

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GTT option in Zerodha

The GTT in Zerodha is available only for Equity Delivery trades and Bank Nifty and Nifty F&O trades. Zerodha offers to use the GTT feature in Zerodha Kite web and Zerodha Kite app, except for Nifty and Bank Nifty GTT, as that is currently available only on the Kite web.

Zerodha offers to place various types of GTT orders

• Sell GTT in Zerodha
  Sell GTT: Sell GTT helps you exit holdings or short-sell F&O contracts. You can place targets, stop-loss, and target orders. The order is executed if shares are available in the demat account and filled on the exchange.
• Zerodha GTT Buy order
  Buy GTT: When you create a GTT buy order, a buy order is placed on the exchange at a limit price when the trigger price is hit.

GTT stop loss in Zerodha
The stop loss feature in GTT helps to limit the losses. The GTT stop-loss option is available under the OCO trigger type, where you must input the stop-loss trigger price and stop-loss limit price. Zerodha offers to input the stop loss trigger price as a price or in terms of a percentage.

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GTT limit in Zerodha

The following are GTT order limitations:

• The GTT feature for stocks is restricted only to Equity Delivery trades (CNC). Zerodha GTT is not available. for MIS/Intraday trades.
• Zerodha GTT for options is available only for Nifty and Bank Nifty F&O contracts (NRML).
• A triggered GTT does not always mean guaranteed execution.
• GTT feature for Nifty and Bank Nifty F&O is available only on the Zerodha Kite web.
• Only 50 GTT orders are allowed per customer.
• GTT orders are not supported. The investors need to manage them independently.
• Once the GTT order is triggered, it moves out of the GTT queue and needs to be placed again if it is not executed.
• A GTT sell order can get rejected or fail if the TPIN is not authorised or has expired its validity of 90 days.
• GTT order placement is allowed only during market hours.

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Setting GTT in Zerodha (How to use GTT order in Zerodha?)

You can use GTT in Zerodha app or on the Zerodha Kite web. The GTT feature order for Nifty or Bank Nifty is currently available only on the Kite web. Creating GTT in Zerodha is a simple and easy process.

Steps to create GTT order in Zerodha

1. Log in to Zerodha Kite web or Zerodha app.
2. In the Zerodha Kite web, select the scrip from the market watch and go to the short menu by clicking on '…' on the right side. The Create GTT option will appear in the dropdown.
3. In the Zerodha app, select the desired scrip. You will see the Create GTT option.
4. Click on Create GTT.
5. Submit the transaction type as Buy or Sell.
6. Select the trigger type Single or OCO (One cancels the other).
7. For Single trigger type - Input the desired quantity's trigger price and limit price.
8. For OCO trigger type - Input Stop loss trigger price and limit price and Target trigger price and limit price for the required quantity
9. Tick to agree to the GTT Terms.
10. Click on Create on the web and swipe on Create GTT in the Zerodha app.

Points to Note for GTT trade Zerodha:

1. Zerodha GTT trigger price can be set as a price or by as a percentage.
2. In the case of OCO, when one trigger condition hits, the other trigger gets auto-canceled.
3. The executions when GTT gets triggered are not guaranteed.
4. Single trigger type gets used to buy or sell existing holdings.
5. OCO trigger type is generally used to set targets and stop loss for stock holdings.

 

Points to Note for GTT trade Zerodha:

1. Zerodha GTT trigger price can be set as a price or by using percentage.
2. In the case of OCO, when one trigger condition hits, the other trigger gets auto-canceled.
3. The executions when GTT gets triggered are not guaranteed.
4. Single trigger type gets used to buy or sell existing holdings.
5. OCO trigger type gets generally used to set targets and stop loss for stock holdings.

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GTT Zerodha example - How Zerodha GTT work ?

This section lets us see the examples for both trigger types using the Sell transaction type.

Example 1: using Single Trigger Type

Say, the current price of Infy is Rs 785.70. You set a trigger price of Rs 799 and a limit price of Rs 799. (The trigger and limit price set is higher than the market price as it is a sell trade)

In this case, if the price of INFY reaches Rs 799, the trigger price of Rs 799 is hit on the exchange, and a limit sell order of Rs 799 is placed. The order is executed if there is sufficient stock in your Demat account and a price match at the set limit price is found.

If the limit price in the above example was Rs 805, the execution would be possible only if the stock reached that price. But if the stock price on that particular day does not go over Rs 802, the GTT-triggered order gets canceled and needs to be placed again.

Example 2: using OCO Trigger Type

Say the current price of Infy is Rs 785. You set a target trigger price and target limit price of Rs 800 and a stop-loss trigger price and stop-loss limit price of Rs 700. (The Target trigger and limit price are higher than the market price as you have a target in mind to sell the shares at that price. But in the worst case, if the market is not in your favor, you can set a stop loss to limit your losses.

In this case, if the trigger price of Rs 700 or Rs 800 hits the exchange, a limit sell order at the corresponding limit price is placed. This order is executed if you have the stock in your Demat account and a buyer can purchase it at that price. Once either of the triggers hits, the other trigger is cancelled.

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Advantages of GTT Orders

A few advantages of using GTT orders are as follows:

• Risk Control: GTT orders allow you to set maximum and minimum prices for securities to control risk.
• Time Control: GTT orders enable you to execute trades at a specific time, helping you to time your entry or exit into the market.
• Avoiding Slippage: GTT orders can help you prevent slippage. They ensure your orders are executed at the price you specify. This means you can avoid paying more than you intended.

Disadvantages of GTT Orders

A few disadvantages of using GTT orders are as follows:

• Execution Risk: There is always a risk that the security will reach the specified price after the order expires.
• Market Risk: The security's market price may change between order placement and execution.
• Liquidity Risk: Low security liquidity may impact order execution at the desired price.

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Zerodha GTT Margin

Zerodha does not require any margins at the time of GTT order placement. However, when the order gets triggered, Zerodha checks for margin and holdings before placing the order to the exchange. The GTT orders get rejected in case of insufficient margins or holdings as applicable.

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GTT Error in Zerodha

The most common concern observed in the GTT Zerodha order is GTT triggered but not executed. This is ideally not an error but this is the way a GTT order in Zerodha works. A triggered GTT does not guarantee trade executions. A GTT order allows only limit orders to be placed at the exchange. Once the GTT is triggered but, no match is found at the specified limit price, the GTT order gets canceled at the end of the day.

To increase the probability for trade executions, the buy limit orders should be above the trigger price and the Sell Limit orders should be below the trigger price.

Sometimes it happens so that the GTT gets triggered and reaches the limit order price but gets rejected if the T Pin is not authorized. You are required to pre-authorize the trades using T-Pin for seamless transactions in case of sell trades. A T-Pin remain valid for 90 days. In case the TPIN gets expired, the order gets rejected.

Zerodha GTT orders placement does not require any margins. However, when the order gets triggered, you need to ensure to have sufficient margins or stocks as the case be, failing which the order gets rejected.

It is important to note that GTT is for as a long-term stop-loss or target. Thus, the difference between trigger and LTP should be at least 0.5% of the stock value. In case, the difference is lesser than the expected limit, the order gets rejected.

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Validity of GTT order in Zerodha

Zerodha GTT time limit is one year from the date of order placement or GTT trigger whichever is earlier.

Once the GTT is triggered, the validity of the GTT order gets expired irrespective of its execution.

The GTT orders for the stocks with corporate action get canceled by the system before the ex-date. Such orders are required to be placed again.

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GTT charges in Zerodha:

There are no GTT feature charges levied for using GTT Features. Once the GTT is triggered, the order will be subject to normal brokerage charges.

Zerodha reserves the right to change pricing with sufficient prior notice to customers.

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Zerodha GTT Tpin

The GTT sell order in Zerodha requires Zerodha GTT authentication by way of CDSL TPIN authorisation. You can pre-authorise your holdings, which will remain valid for 90 days. At the end of 90 days, if you fail to authorise it again, the GTT order gets cancelled or rejected when triggered.

In case you have submitted a POA, you are not required to authorise the TPIN.

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Conclusion

GTT trigger Zerodha is an innovative feature introduced by Zerodha to substitute GTC. The GTT offers passive stock market investors an opportunity to book profits and limit losses without actively tracking the markets. However, there are still certain features of GTC that GTT does not offer. Hence, Zerodha should look to add more features to bring it at par with GTC.

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