How To Place GTT Buy Order in Zerodha?

Finance Guru Speaks: This article will guide you on how to place GTT Buy Order in Zerodha.

Zerodha, as a Trading and Demat Account, has gained very wide popularity because of very low-cost trading and ease of use. 

If you don't have the Zerodha account, then you can open it through this LINK. It is very easy to open a Demat Account in Zerodha.

Please read the complete article. I have shared two Tips at the end of the Article. Please share and like this article for the constant encouragement.

GTT (Good Till Triggered) Orders for BUY: GTT Order for BUY is used to take the delivery of a Stock based on Trigger Price and Limit Price. Normally, we use GTT so that we don't spend too much time monitoring the prices of Stocks. Buy Orders are automatically placed to Exchange (NSE or BSE) based on our pre-defined price once it is triggered.

Trigger Price - Trigger Price is the price (once hit) where Broker sends the Buy Order to the Exchange.

Limit Price - Limit Price is your actual purchase price where you instruct your broker not to go higher than this price for Buying. So Exchange will settle the Buying at this Price if a Seller is found. And the buyer will get the Delivery on (T+2) day on this buying price.

Remember, as per current rules, GTT Orders remain valid for a Year.

Steps to place GTT Buy Order in Zerodha:-

1. Login to Zerodha after clicking here. Provide your User ID, Password, and then your assigned PIN to Login.

Zerodha Login

Zerodha Login

2. On the Home Page, Click on the Orders -> GTT -> New GTT as shown below:-

Click to enlarge - How To Place GTT Buy Order in Zerodha

3. On the Next Screen, start typing the name of the Underlying (Stock). As an example, we are placing GTT BUY order for TCS Shares on the NSE Exchange:-

How To Place GTT Buy Order in Zerodha

Click to enlarge - How To Place GTT Buy Order in Zerodha

4. Once you select the Stock as per Exchange, you can find the details of the Stock. Click on Create GTT:-

Click to enlarge - How To Place GTT Buy Order in Zerodha

5. On the Next Screen, make sure to select BUY transaction type. Enter your choice of Trigger Price, Quantity, and Limit Price (Buying Price). 

Click on Place button:-

Click to enlarge - How To Place GTT Buy Order in Zerodha

Congratulations! You have successfully placed GTT Buy Order for your Stock. You can cross-check your newly created GTT Order from Orders -> GTT list.

Click to enlarge - How To Place GTT Buy Order in Zerodha

Few Tips for placing GTT BUY Order:-

TIP 1: Normally you place GTT Buy Order so that you can get the Stock at a cheaper price and at the same time you don't need to keep on tracking the prices. This approach is useful when you are an Investor having a horizon of a minimum of 1 to 3 years and the selected Stock is a very good fundamental Stock. So you fill the Trigger and Limit Price much lower than the Current Market Price.

TIP 2: If you a Swing or Positional Trader then you would like to buy the Stock only if it is moving above 30DMA or 100DMA prices for the Value Buy. Here, your profit target is around 5% to 8% and the holding period is between 2 to 40 days. In such cases, you may fill Trigger Price & Limit Price higher than the Current Market Price to make sure the price is above the mentioned DMAs for a proper upswing.

Also Read:

How To Create GTT Sell Order in Zerodha?

More Articles on Zerodha

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Images Courtesy: Zerodha Website