IPO | BROKER REVIEW | INVESTING | ALGO TRADING | TECHNICAL ANALYSIS

Zerodha GTT Order Explained

Zerodha GTT Order Explained

Zerodha being the top most broker in India keeps on providing the unique and best services to their beloved customers. Zerodha has introduced GTT which is very similar to the GTC orders. GTT refers to the Good till Triggered orders. This allows the customers to place an order that is sent to the exchange only at the time when the price condition is not met.

What Exactly Does GTT mean?
GTT is an acronym of Good till Triggered Orders. The orders can be placed under the GTT and they get executed anytime within a year once the set price is reached. This order can be placed for both they buy as well as sell orders and can also be cancelled at any time. These orders are more helpful for traders that are unable to constantly monitor their stock market investments. These traders can simply set a price for their stock under GTT and then it will automatically execute once the price is reached.
Since GTT and GTC orders are similar then why does Zerodha don’t provide GTC order?
The GTC orders are only valid until they are cancelled. Such order is beneficial for the investors that don’t track the market daily. With the GTC order, an individual can simply place the order with the target price and then let it be there forever. The orders get executed as the price matches.
Some of the stock brokers in India does not support GTC order. This is the reason that the brokers that offer GTC order has to place the pending GTC orders to the exchange each day in morning. The orders that are not executed are cancelled by the exchange at the EOD.
Placing the pending GTC orders each day creates technical challenges and further increases the cost of the broker as they have the limit of placing 400 messages per second per line.

Zerodha GTT orders
Zerodha has introduced its GTT order facility on 26th of July 2019 for the equity delivery traders i.e. CNC orders. This serves as an excellent substitute for the GTC orders which is the most critical trading feature for the passive stock market investors.
GTT being very similar to GTC still do not posses conveniency of GTC orders. At the time of placing the GTT orders one needs to keep many things in mind.

Pricing of Zerodha GTT

The pricing of Zerodha GTT orders is zero. It charges no amount for using the GTT feature of Zerodha.



How to Place GTT orders with Zerodha?
1. Login to Zerodha Kite Web.
2. Go to the Market Watch option and then choose the stock and click on “…” option.
3. Further, click on the “Create GTT” option.
4. An order form will appear fill it with all the correct details.
5. Go to the “orders” page and click on GTT Tab to view the status or add or update.

Advantages of Zerodha GTT Orders
1. The orders that are placed holds the validity of a year.
2. Zerodha provides this service free of cost to all its customers.
3. The orders further get executed only at the time when the trigger price is reached.
4. It is very similar to GTC orders that are offered by full-service brokers such as ICICI Direct.
5. An individual does not require to place an order every day and in case they are willing to buy or sell the price at which they want to enter or exit.

Disadvantages of Zerodha GTT Orders
1. GTT orders are only available in Equity Delivery (Cash and Carry) Trades.
2. This type of order is only available on Zerodha Kite Mobile Trading App.
3. The GTT orders can be easily placed only during the market hours. It is unlike the GTC orders that can be placed during any time of the day.
4. Once triggered, the order gets removed from the GTT queue irrespective to the orders got executed or not.
5. It has maximum 50 GTT orders each customer.

Conclusion
Zerodha GTT orders facility is one of the excellent offering for the other passive stock market investors. The GTT orders needs to be more modified in order to meet the comfort of GTC orders that most of the investors find much convenient. Zerodha must look upon adding some more features to bring it at par with GTC orders.