It gives this example for Buy GTT
Current price of Reliance = 1485.30
Trigger price = 1500
Limit price = 1505
so if the trigger price of 1500 is hit on the exchange, a limit buy order at 1505 is placed.
Here’s what I don’t understand: we want to buy the stock, so why does GTT wait for the price to increase to 1500? Why doesn’t the GTT trigger immediately and buy the stock at cheaper price of 1485.30? Can we set Buy GTT to place order as soon as LTP (or offer price) is less than trigger price?
Same question for Sell GTT, is there any option to sell as soon as LTP is above the trigger price (it may already be above trigger price at the time of setting up Sell GTT)?
Take for example, someone is trading based on Support and Resistance and wants to buy shares only when there is breakout from resistance level, so one would place buy GTT order over CMP. Similarly if one wants to sell only after Support is broken than they will place sell order below CMP.
If you want to buy the stock immediately, then you can simply place Market or a Limit order.