Most orders you place on a stock exchange are valid only for the day. If the price you want is not reached by the close, the order expires and you have to place it again. A GTT order, short for Good Till Triggered, solves this for longer-term investors: you set a trigger price, and an order is sent to the exchange only when the market reaches it, which might be days or weeks later.
This article explains how GTT orders work, the difference between single and two-leg triggers, worked examples for buying, booking profits and protecting holdings, and the risks that many users overlook.
How a GTT works
A GTT has two parts: a trigger price and an order that will be placed when the trigger is hit, usually a limit order at a price you specify.
Until the trigger is hit, nothing goes to the exchange. Your broker's system watches the last traded price. When the price reaches your trigger, the system places the order on the exchange on your behalf. From that point, it behaves like any ordinary order: it may fill completely, partially, or not at all, depending on the market.
GTTs are offered by many Indian brokers for equity delivery holdings, and some offer them in other segments. How long a GTT stays active, how many you can hold, and which segments are covered depend on your broker's terms, so check them before relying on a GTT.
Because the trigger is held by the broker rather than the exchange, a GTT is not the same as an exchange stop-loss order, which sits in the exchange order book for the day.
Single trigger and two-leg (OCO) triggers
Single trigger. One trigger price and one order. Used to buy when a stock falls to a level, or to sell when it rises to a target, or to sell if it falls to a stop level.
Two-leg, or OCO (one cancels the other). Two triggers on the same holding: one above the current price as a target, one below as a stop. Whichever is hit first places its order, and the other leg is cancelled. This lets you set both an exit for profit and an exit for protection on a holding, and then step away.
OCO triggers are particularly useful for swing positions and long-term holdings where you have a clear plan but do not want to watch the screen every day.
Worked examples
Illustrative figures.
1. Buying on a dip. A stock trades at 1,050. You would like to buy 20 shares if it falls to 1,000. You set a buy GTT with a trigger at 1,000 and a limit price of 1,002. If the stock trades at 1,000, a limit buy order at up to 1,002 is placed. If the price never reaches 1,000, nothing happens.
2. Booking a profit. You hold shares bought at 800, now at 900. You decide to sell at 1,000. You set a sell GTT with a trigger at 1,000 and a limit at 998, slightly below the trigger to improve the chance of a fill.
3. Protecting a holding with OCO. You hold shares at 900, with a target of 1,000 and a stop at 840. You set an OCO: upper leg trigger 1,000 with a limit of 998; lower leg trigger 840 with a limit of 835. If the stock rises to 1,000 first, the sell order is placed and the 840 leg is cancelled. If it falls to 840 first, the stop order is placed and the target leg is cancelled.
In each case, the limit price is a deliberate choice: close enough to the trigger to fill in normal conditions, with some room for the price to move.
The risks most users overlook
A trigger is not a fill. When the trigger is hit, a limit order is placed. If the price moves past your limit quickly, the order may not execute. In the stop example, if the stock falls from 845 to 820 in a few seconds, a limit sell at 835 may stay unfilled while the price keeps falling.
Gaps jump triggers. If the stock closes at 860 and opens at 800 after bad news, the 840 trigger is hit at the open, but a limit sell at 835 is above the market and will not fill until the price comes back up, which it may not. Using a lower limit, or a market order where allowed, raises the chance of a fill at the cost of a worse price.
Funds and holdings must be available. A buy GTT needs enough money in the account when it triggers; a sell GTT needs the shares in your demat account, unblocked. Otherwise the order is rejected.
Corporate actions. Splits, bonuses and similar events change the price per share. Brokers may cancel or adjust existing GTTs around such events; check yours afterwards.
Out of sight, out of mind. A GTT you set months ago may no longer match your plan. Review active GTTs regularly.
GTT versus other order types
| Day limit order | Stop-loss order | GTT | |
|---|---|---|---|
| Validity | Until the end of the day | Until the end of the day | Until triggered, cancelled or expired under broker terms |
| Where it waits | Exchange order book | Exchange (as a stop order) | Broker's system until triggered |
| Main use | Buy or sell at a set price today | Intraday or same-day protection | Targets, stops and entries over days or weeks |
| Gap protection | None | None | None |
No order type protects against a gap. GTTs help with discipline and convenience, not with the risk of the price jumping past your level.
Good habits
Set the GTT when you buy. Deciding the target and stop at entry, and recording them as an OCO, removes the temptation to move them later.
Choose limit prices thoughtfully. For stops, a limit some distance below the trigger improves the chance of a fill in a fast fall.
Review monthly. Cancel triggers that no longer fit your plan, and check after corporate actions.
Keep the plan bigger than the order. A GTT executes a decision; it does not make the decision for you.
An account with GTT and OCO orders
Place long-lived targets and stops on your holdings without watching the screen. Free to open
GTT availability, validity, limits and segments depend on your broker's terms and change from time to time. Figures are illustrations. This is educational material, not advice, and no stock is recommended. We run no tips group and no signal service, we manage nobody's money, and no return is promised.
Disclosure: the account-opening link on this page is under Atul Shrivastava's Zerodha Authorised Person registration (NSE AP Reg: AP2516003481; Zerodha Broking Ltd. SEBI Reg: INZ000031633) and earns a revenue share. TheFinBaba is not a SEBI-registered Investment Adviser — this content is educational, not investment advice.
Frequently Asked Questions
What is a GTT order?
A Good Till Triggered order: you set a trigger price, and the broker places your order on the exchange only when the market reaches it, which can be days or weeks later.
What is an OCO GTT?
A two-leg GTT with a target above and a stop below the current price. Whichever triggers first places its order, and the other leg is cancelled.
Does a GTT guarantee execution?
No. When triggered it places a limit order, which may not fill if the price moves past the limit quickly or gaps beyond it.
Is a GTT the same as a stop-loss order?
No. A stop-loss order sits on the exchange for the day; a GTT is held by the broker until triggered and can last much longer.
Do GTTs protect against gaps?
No. If the price opens beyond the trigger, the order is placed at the open and a limit price may then be out of reach.
Related Reading
- Entering when price clears a level
- Market, limit and stop orders compared
- Positions held for days or weeks
- Deciding where to take profits
- Splits and bonuses that affect triggers
- A regular review of every holding
Disclaimer: TheFinBaba provides educational content only - this is not investment advice. Trading involves risk of loss.
