How can I use the GTT feature?
Buy GTT is used for creating triggers to buy stocks for delivery. With a GTT buy order, when the trigger price is hit, a buy order with the limit price mentioned is placed on the exchange.
Sell GTT is used to exit current stock holdings, either just a target order or both stoploss and target where triggering of one will cancel the other (OCO).
Here are a few Illustrations on the use of GTT:
Buy GTT : In the below example, the current price of Reliance is 2731.85; we are placing a trigger of 2760 which if it is met on the exchange, a CNC order to buy Reliance at 2765 will be placed.
Sell GTT- Single: In the example below, the current price of Infy is 1822.15, when the trigger of 1850 is met, a selling CNC order with a price of 1850 gets placed on the exchange. This sell order will get executed if you have the stock in your demat and if your limit sell order is filled on the exchange.
Sell GTT – OCO (One Cancels Other): In the example below, the current price of Infy is at 1822.15. We are placing a target to sell Infy from the holdings at 1910 with a trigger price of 1910. We are also placing a stoploss order to sell at 1730 with a trigger price of 1730. If either of the target or stoploss price conditions are met, a selling CNC order is placed while cancelling the other condition. This sell order will get executed if you have the stock in your demat and if your limit sell order is filled on the exchange.
- GTT is completely free and there are no additional charges for using it.
- Sell GTT orders triggered on your equity holdings will not go through as you need to authorise the delivery of your shares using CDSL TPIN. See How do I generate the CDSL TPIN required to authorise my CNC sell transactions? This is not applicable if you’ve submitted a POA. See What is power of attorney (PoA) and why is it needed?