How many types of GTT orders are there?

Modified on Fri, 9 Jan at 12:50 PM

There are two types of ‘GTT’ orders: 

Single: A single GTT order is used when you are placing a buy order (taking a fresh position). Here, you can define both trigger and limit price which can be higher or lower than the current last traded price. For example, you want to buy shares of ICICI Bank Ltd, currently trading at Rs 900. However, you expect the stock price to fall to Rs 750 – Rs 800 levels in the coming months. Normally, you will have to track the stock every day till your target price is hit. But with a GTT order, you can place a limit buy order at Rs 750 with a trigger price of Rs 760, which will stay valid for 365 days. So, whenever the stock hits your trigger price of Rs 760, your limit buy order of Rs 750 will be placed automatically. 

One Cancels the Other (OCO): OCO order is used to place sell orders (from your existing holdings). Here you can define target and stop-loss price. For example, say you already own 100 shares of ICICI Bank Ltd. in your Demat account with an average purchase price of Rs 750. The stock is currently trading at Rs 900. Now you place a sell OCO GTT order, with a target price of Rs 1,000 and a stop-loss of Rs. 600. So, if your target trigger gets hit, your stocks will get sold at Rs 1,000 and the stop-loss order of Rs. 600 will get cancelled automatically and vice-a-versa. 