Introduction

If you are a passive investor, Zerodha has some good news for you.

For buying stocks of your choice at a price you want, you would no longer be required to keep checking the market every day. You can just place an order and whenever that price hits, you would be able to able to buy that stocks.

Zerodha has introduced Good Till Triggered (GTT) orders, which can save you a lot of time and effort.

But let’s not get ahead of ourselves and let’s understand GTTs a little better.

What are Good Till Triggered (GTT) Orders?

Good Till Triggered Orders give you the flexibility of placing buy or sell orders at a price of your choosing, without having to track the stock day after day.

Say, for example, if you want to buy 100 shares of Reliance if/when it reaches the price of 1000. But you can keep checking the market every day whether Reliance is going up or coming down. So, what you can do is place a GTT order and that’s it!  If Reliance does come down to 1000 rupees, the order will be placed/executed.

Can I use it for selling stocks in my portfolio?

Yes, you can use GTT orders for selling the shares in your portfolio. The process is the same. You just place the sell order and if/when the trigger price is reached, Zerodha will send the order to the stock exchange for execution.

How long will the order be valid?

Once placed, these orders will be valid for 1 year.  After that, they will be cancelled.

Some Limitations

GTT orders are not without limitations though. Here are a few limitations:

1. This is going to be a paid feature, so you will have to shell out extra bucks to use this feature.
2. As of date,  these orders can only be placed via Kite (Web version). You will have to wait till the feature will be available for mobile or call-n-trade.
3. The orders can only be placed during market hours.
4. If the order gets triggered but not filled, then that order would be cancelled and you would have to create a new GTT order.
5. There’s a limit of a maximum of 50 orders per customer.
6. The GTT order will be cancelled automatically when there are corporate actions like a bonus, dividend (if greater than 5% of market value), stock split, etc.
7.  While placing the GTT order Zerodha doesn’t check the margin available in your account. It is checked only when a GTT order is triggered and placed on the stock exchange. So you have to make sure to check the margin availability.

Cost of GTT Orders

At present Zerodha is offering the GTT orders for free.