🧠 What is GTT (Good Till Triggered)?
A GTT order is a type of order where you tell your trading app:
“Hey, when the price hits THIS level, automatically place my buy or sell order.”
Until that price is hit, nothing happens. The order just waits patiently in the background.
📌 Why do we need GTT?
Because:
- You’re busy with work, college, gym, life 😄
- Markets move fast
- You can’t watch prices all day
GTT lets you plan trades in advance.
🧩 How GTT works (simple steps)
- You set a trigger price
- Market touches that price
- Your actual order (buy or sell) is placed automatically
💡 Trigger price ≠ execution price
It just activates the order.
📈 Example (super relatable)
Let’s say:
- Reliance is trading at ₹2,600
- You want to buy it only if it falls to ₹2,450
What you do:
- Set a GTT Buy with trigger price = ₹2,450
- Go live your life 😎
If the price hits ₹2,450:
✔️ Your buy order gets placed automatically
🛑 GTT for Stop-Loss (very common use)
You bought a stock at ₹500
You don’t want to lose more than ₹50
- Set GTT Sell
- Trigger price = ₹450
If stock falls to ₹450:
⚠️ Order triggers and helps limit your loss
🔁 How long does GTT stay active?
Depends on broker, but usually:
- Valid for long term (weeks to months)
- Much longer than normal day orders
That’s why it’s called Good Till Triggered, not “Good Till Today”.
⚠️ Important things to remember
- GTT is not guaranteed execution (market liquidity matters)
- Big price gaps can affect execution price
- Works best in liquid stocks
🧠 One-line takeaway
GTT = Good Till Triggered
👉 “Place the order only when my price condition is met.”
A GTT order is an instruction you give to your trading platform saying that a buy or sell order should be placed only when a specific price (called the trigger price) is reached. Until that trigger price is hit, the order remains inactive. The moment the stock touches that level, the order gets activated and is sent to the exchange automatically.
This is especially useful because stock markets don’t move in straight lines. Prices keep going up and down, sometimes very quickly. With GTT, you can calmly plan your entry or exit in advance, instead of reacting emotionally when prices suddenly move. In simple words, GTT helps you trade with logic, not panic.
Let’s take a practical example. Suppose a stock is trading at ₹1,000 today, but you believe it’s a good deal only if it comes down to ₹900. You can set a GTT Buy order with a trigger price of ₹900. You don’t need to watch the market every minute. If the price falls to ₹900 anytime in the future, your buy order gets placed automatically. If it never reaches that level, nothing happens.
GTT is also very popular for protecting profits and limiting losses. Imagine you bought a stock at ₹600 and it has gone up to ₹750. You want to protect yourself in case it starts falling. You can set a GTT Sell order at ₹700. If the stock drops to that level, the order triggers and helps you exit before losses increase. This makes GTT a powerful tool for risk management, especially for beginners.
Another important point is that GTT orders stay active for a long time compared to normal market or limit orders. Regular orders usually expire the same day, but GTT orders can remain valid for weeks or even months, depending on the broker. This makes GTT ideal for long-term investors who are waiting for specific price levels.
However, GTT is not magic and it’s not risk-free. When the trigger price is hit, the system places a normal order in the market. If the stock price moves very fast or there is low liquidity, the final execution price may be slightly different. That’s why GTT works best in well-traded, high-volume stocks.
To sum it up in simple terms:
GTT (Good Till Triggered) lets you decide what to do and at what price in advance. It saves time, reduces stress, and helps you stick to your plan—something every new investor in their 20s really needs while learning the market.