I bought ZENTEC yesterday at 674.85. I placed a sell GTT today to be triggered at 693 with 690 as the order placement price.
Now to my shock, within the first second at 09:15:01, the GTT was triggered. The stock never traded below 700 the whole day and ended up in Upper circuit. The customer support executive says gapup is the reason. Is this normal?
Yes, that’s correct. Whenever you initiate a GTT (Good Till Triggered) order, it automatically transforms into a limit order and is then sent to the exchange. In this specific scenario, due to a market gap-up and your target set at 693 with a trigger at 690, the execution is likely to take place within that particular price range.
So basically nobody at zerodha understands how GTT works. It was a sell GTT. The sell GTT is triggered only on the breach of the price, as very clearly mentioned in your support article on GTT. You cannot compare buy to sell. You trigger buy GTT’s on gapup and sell GTT’s on gap down. Not always trigger.
The whole purpose of sell GTT is to put a stop loss for your position, and you are squaring it off without it reaching the stop loss.
So tell me, if your reasoning is true, every stock that gaps up, you will trigger the sell GTT if placed? I can show multiple occasions in my own trading account when this hasn’t happened.