Good Till Cancelled ( GTC )
Usually, when you place an order, it is valid only until it is executed or the end of the day. You can place orders specifying the exact price you want, and not the current market price. These are called limit orders. These are valid for a day.
With the Good Till Cancelled (GTC) feature, you can place these limit orders without worrying about their expiration. These orders can be valid for as long as a year. You have the option of specifying the exact validity period.
How does GTC work?
- When you place a GTC order, you are essentially placing a limit order. However, if on the first day, it is not executed, the order expires. Kotak Securities will then place a new order every day until it is executed.
- For example, you place a GTC order on March 7, 2014 to buy 100 shares of Reliance Industries at a limit price of Rs 820. If you fix the expiry date of the order as April 7, 2014, you give the order a period of one month to buy at the specified price. If during this time, RIL share price falls to Rs 820, and you have 100 shares available, the order will be executed. If not, the order will automatically get cancelled.
- Sometimes, the order can be only partially executed. In such a case, Kotak Securities will place a fresh request only for the remaining unexecuted portion of the order. This continues until your validity period expires or the order is executed.
- Thus, you are essentially instructing Kotak Securities to place a fresh order until completion through GTC.
- Buy at right price
- Peace of mind
- Seamless order execution
Read More >Why to opt for GTC service?
- Stock market investing is not just about buying the right share, but also getting the price right. For this reason, you can’t just place an order to buy a share, irrespective of its current market price.
- For this reason, limit orders help you introduce conditions that suit your needs. This means, your order will not be fulfilled if the share price criteria is not met. Sometimes, the stock may take days, weeks or months to revert to a price of your liking. But, limit orders are only valid for a day. In this case, you will have to place an order every day to not miss the opportunity.
- With GTC, you can place an order once and forget about it. You also have the option to specify the exact validity period. However, this cannot exceed 365 days.
- Moreover, the GTC also allows you to complete the order in stages. Even if a few shares are available at the required price, the order seizes the opportunity and executes. This continues until either the order is fulfilled or the validity period expires.
- GTC is not just for buy orders, but also sell. It will also execute a sell order if there is some buyer willing to purchase the shares at your required rate. This can also be conducted in stages.
- All online existing and new clients of Kotak can avail GTC facility for order placement.
+ Expand AllFrequently Asked Questions (FAQs)
- QIs this facility available for all segments?ANo. You can place orders through GTC only in the equity cash segment.
- QCan I place stop-loss cash orders with GTC facility?ANo. You cannot place stop-loss cash orders with GTC order validity.
- QCan I place market orders with GTC facility?ANo. You cannot place a market order with GTC order facility.
- QCan I place cash orders with GTC order facility during the pre-open session?AYes. You can place cash orders with GTC order validity during the pre-open session. But the order will be sent to the exchange only after markets open.
- QDo I need to have margin for placing orders with GTC order validity?A
No unlike normal orders for GTC orders you do not need to maintain margin at the time of placing orders. GTC orders check margin at the time of execution.
You will have to ensure that margin is available in your account to execite GTC orders and sufficient margin is maintained till the expiry of GTC order. The GTC order will be cancelled for the day if margin is not available at the time of order placement to exchange.