How does GTD order work?

A GTD order lets you place a stock order that stays active until a date you choose. For example, if a stock is trading at ₹200 and you want to buy it at ₹180, you can place a GTD buy order for ₹180 valid for 10 days. If the stock falls to ₹180 within those 10 days, your order will be executed automatically. If it doesn’t reach ₹180, the order will expire after 10 days. This helps you avoid entering the same order every day.

1. Stop-loss orders have adjustable price protection.

2. Orders executed outside permissible ranges may be canceled, with associated costs to the client.

3. Arihant Capital's risk management system checks orders according to exchange rules, SEBI regulations, and internal policies.

4. Arihant Capital reserves the right to modify or cancel orders even when trigger conditions are met under specific market situations:

   • Orders triggered during market gaps may be adjusted or canceled.

   • Orders with insufficient price differentials might be affected.

5. Arihant Capital may close positions under specific circumstances, requiring the client to modify related orders.                                                                                               
   GTD Order: Important Points

   1. GTD stock orders will trigger at 9:00 AM.

   2. GTD derivative orders will trigger at 9:15 AM.

   3. GTD orders for derivatives are valid only for specific contracts.

   4. No additional charges apply to GTD orders.

   5. Orders linked to corporate actions might be canceled.

   6. GTD orders are restricted for specific scripts.

   7. Some option contracts are ineligible for GTD orders.

   8. GTD orders have expiration dates and are single-use; they must be reset for subsequent attempts.

   9. Clients are responsible for managing their order book, especially when modifying orders that affect position types.

Risk Consideration

Using GTD orders carries several risks. Market volatility can lead to rapid price fluctuations, causing your order to execute at a less favorable price than expected. There's also the risk of missed opportunities if the market moves in your favor after the order expires, as it will automatically cancel if not executed by the set date. 

As time passes, the possibility of reaching your target price may decrease, leading to the order expiring without execution. Additionally, in fast-moving markets, the order might not execute at the exact price you anticipated, and in low-liquidity situations, the order might not fully fill or reach the target price. These risks highlight the importance of carefully considering market conditions and your investment strategy before using GTD orders.

Disclaimer

GTD orders are subject to market conditions and broker policies. Execution is not guaranteed, and orders may expire unfilled or be impacted by corporate actions. Price fluctuations and low liquidity can affect execution quality. Investors should review all terms and consult their broker before placing GTD orders to ensure they align with their investment goals.