First of all. Congratulations on GTT. It’s a real feat. Respect!!
I just had some quick questions - out of curiosity.
If I understand it correctly GTT orders are not pushed to exchange on daily basis. So is it residing in some segregated GTT order book not with exchange but with broker? Have I understood it correctly?
Extending the analogy for GTC, what happens when a trigger happens, order goes to the exchange but the order is not executed due to limit price not available? Will the order be cleared from GTT order book? Or is the system taking care of the fact that GTT order was triggered but not executed and hence will be available next day as well?
The GTT implementation essentially implies that you are tracking all the distinct stock price on realtime tick-by-tick basis? And with every tick of a stock comparing if all the orders for all the clients having GTT in that stock is triggered or not? I know it might be close to trade secrets but what kind of infrastructure, database you guys are using? Is it KDB or sth similar?
Is the order execution (sending to exchange) for GTT parallel or sequential? Let’s say a common price is triggered for a huge number of clients at the same price point. Very common thanks to technical analysis. What methodology you follow for prioritisation - Assuming it is sequential - does the person putting in the GTT at the earliest timestamp gets priority of order being sent to exchange and hence better execution?
Further to question 3, what is the approximate delay in the price getting triggered and the last GTT order from your GTT order book being sent to exchange?
Extending question 2, what happens when order is triggered but you don’t have the necessary margin? Does the order remains in GTT order book the next day?
Feel free to ignore any of the question if you find it not fit to answer herein. I won’t mind, but I think a better understanding of underlying working can help many plan trades properly.
Lastly, any plans / timelines for GTT via Kite Connect APIs?
Thank you for all your responses. Really appreciate it.
Just a small suggestion on this - I think it will go a long way if a neatly crafted email can be sent on EoD basis, reminding client if GTT was triggered. Just like it happens when you inform clients about outstanding positions with compulsory delivery closer to expiry. This will save a lot of pain if the order gets triggered and cancelled for typically one would have done analysis months ago for a GTT order and won’t login on day-to-day basis. A notification will help them take action accordingly.
Also, few more questions -
How do you handle major corporate actions like bonus / stock split / merger / restructuring?
How do you handle minor corporate actions like abnormally large one time dividend declared?
Are after market hours settlement price and pre-market hours price considered for GTT trigger?
How are stock name changes / ISIN code changes handled?
Are GTT trigger prices exchange specific on independent of BSE / NSE?
These both are answered in the blog, quoting “Whenever there is a corporate action, like bonus, dividend (if greater than 5% of market value), stock split, etc., the GTTs for the corresponding stocks will be canceled before the ex-date. You will have to re-place the GTT manually after the corporate action. These GTTs are canceled to ensure that the order is not triggered by the movement of stock price due to the corporate action.”
Do note that only if the dividend is >5% of the market price of the underlying, the GTT will be canceled.
No, pre-market & post-market prices aren’t considered. GTT can trigger only during the operation of regular market hours.
This is handled internally, this will have no bearing on your GTT order.
It’s specific to the Exchange where you’ve placed the GTT order
