Good Till Trade (GTT) orders are specialized orders set up by traders to automatically execute a trade once a predetermined price level is hit. This type of order benefits traders who want to take advantage of short-term market fluctuations but do not have the time to monitor the market constantly. With a GTT order, traders can set the price level they want to buy or sell at, and the order will be triggered when the price reaches that level.
To use GTT orders efficiently, traders must understand the risks associated with their use. When setting up a GTT order, traders should know the maximum price they are willing to pay for a particular asset. As the market moves up and down, the asset price can move beyond the pre-set level and cause an unwanted trade to be executed. Additionally, traders should be aware of the amount of slippage that can occur when the order is triggered. Slippage is when the asset's price moves beyond the pre-set level before the order is executed.
A GTT order is an order that remains in place until it is either executed or canceled. This type of order can be placed on both the buy and sell sides of the market.
4 different types of GTT orders that you can use when trading
GTT Buy Order:
It is an order to buy a security at a specified price and will only be triggered once the security reaches that price.
GTT Sell Order:
It is an order to sell a security at a specified price and will only be triggered once the security reaches that price.
GTT Stop Order:
It is an order to buy or sell a security once it hits a specific price (the "stop" price). These orders are typically used to limit losses or lock in profits on a trade.
GTT Limit Order:
It is an order to buy or sell a security at a specific price (the "limit" price). These orders are typically used to enter or exit a trade near the market price.
How to Use Good Till Trade (GTT)
- Enter the GTT order in the 'Order Type' field.
- Set your 'Trigger Price.' This is the price at which your order will be activated.
- Set the 'Time In Force.' This tells our system how long it takes to keep trying to fill your order. The options are Day (until the end of the Day), GTC (good till canceled), or IOC (immediate or cancel).
- Hit 'Preview' to review your order and ensure everything is correct.
- Once you're happy with your order, hit 'Send Order.'
Conclusion
GTT order is a helpful tool that can help traders execute their trades more accurately and flexibly. By defining the specific conditions to be met before an order is triggered, GTT orders allow traders to react quickly and precisely when the right moment arrives. With this knowledge of using Good Till Triggered orders, you should now understand how to place your successful GTT orders on your trading platform.
Also Read:
Dealing With Losses in Trading: Simple Strategies to Help You Cope