How to Place GTT Order in Zerodha: A Comprehensive Guide

Are you looking to make smarter and more efficient trades on the Indian stock market? If so, then you’ve come to the right place. In this article, we will dive into the world of GTT orders, a powerful tool offered by Zerodha, India’s leading discount broker. Whether you’re new to trading or a seasoned investor, GTT orders can help you take advantage of market opportunities without constantly monitoring the market. So, let’s get started and learn how to place GTT order in Zerodha.

What is a GTT Order in Zerodha?

Before we jump into the process of placing a GTT order, let’s first understand what it is. GTT stands for “Good Till Triggered,” and it allows you to set buy or sell orders based on specific trigger conditions. Once the trigger condition is met, the GTT order is executed automatically, even if you are not actively tracking the market. This feature is especially useful for investors who prefer a hands-off approach or have other commitments that prevent them from constantly monitoring the market.

Setting Up a GTT Order

Now that we have a basic understanding of GTT orders, let’s explore how to set up one in Zerodha. Here are the steps you need to follow:

1. Log in to your Zerodha Kite account.
2. On the dashboard, click on the “Trading” tab.
3. Select the stock or instrument you want to place a GTT order for.
4. Click on the “More Options” button and choose “Create GTT.”
5. In the GTT order form, you will see various fields that need to be filled out.

Selecting the Trigger Condition

The trigger condition determines when your GTT order will be executed. Zerodha offers several trigger options, including price, percentage change, and volume. Let’s take a closer look at each option:

• Price: You can set a trigger when the stock price reaches a specific level. For example, you can set a trigger to buy a stock when it reaches ₹100 or sell it when it drops to ₹80.
• Percentage Change: This option allows you to set a trigger based on the percentage change in the stock price. For instance, you can place a trigger to buy a stock when it increases by 5% or sell it when it decreases by 10%.
• Volume: If you’re interested in trading based on the trading volume, you can set a trigger for a specific volume level. This can be useful for identifying stocks that are experiencing increased buying or selling pressure.

Defining the GTT Order Type and Price

After selecting your trigger condition, the next step is to define the type of GTT order and the price at which you want it to be executed. Zerodha offers three order types:

1. Limit Order: This type of order allows you to buy or sell a stock at a specific price or a better price. For example, you can set a limit order to buy a stock at ₹90 or sell it at ₹110. If the market price does not reach your specified price, the order will remain open until the trigger condition is met.
2. Market Order: With a market order, you buy or sell a stock at the current market price. This order type ensures that your transaction is executed immediately, regardless of the price.
3. Stop Loss Order: A stop loss order is used to limit your losses. You can set a stop loss trigger price to sell a stock if it reaches a certain level. This helps protect your investment in case the stock price goes against your expectations.

Once you have defined the order type, enter the price at which you want the GTT order to be executed. Double-check the price to ensure its accuracy, as any mistakes could lead to unintended consequences.

Validity and Saving the GTT Order

The final step in setting up a GTT order is specifying its validity. Zerodha provides two options for the validity of GTT orders:

• Day: This option means that your GTT order is only valid for execution during the trading day on which it is placed. If the trigger condition is not met by the end of the trading day, the order will expire and will need to be re-created.
• GTT: By selecting this option, your GTT order remains valid until the trigger condition is met or you manually cancel it. This provides flexibility and allows you to create long-term GTT orders.

After setting the validity, review all the details of your GTT order to ensure correctness. Once you are satisfied, click on the “Save” button to place your GTT order. You can find all your GTT orders in the “GTT Orders” tab on the Zerodha Kite dashboard.

Benefits of Using GTT Orders

Now that you know how to place a GTT order in Zerodha, let’s take a moment to explore the benefits:

1. Time-saving: GTT orders allow you to automate your trades and free up your time. Instead of constantly monitoring the market, you can focus on other important tasks while your GTT orders take care of executing trades for you.
2. Eliminates emotional decisions: Emotions can often cloud our judgment when making investment decisions. By predefining your trigger conditions in a GTT order, you can avoid acting solely based on emotions, creating a more disciplined approach to trading.
3. Increased efficiency: GTT orders help you capitalize on market opportunities without delay. Once your trigger conditions are met, the order is executed automatically, eliminating the risk of missing out on favorable trade conditions.
4. Flexibility: Zerodha allows you to create multiple GTT orders for different stocks and instruments. This flexibility enables you to manage a diverse portfolio efficiently.

Conclusion

Placing GTT orders in Zerodha is a simple yet powerful way to enhance your trading experience. By leveraging the automation and flexibility provided by GTT orders, you can make smarter trades without being tethered to your trading platform. Whether you’re a beginner or an experienced investor, GTT orders can be a valuable tool in your trading arsenal. So, log in to your Zerodha account, set up your GTT orders, and take your trading to the next level.