Safe trading requires users to set targets as well as stop-loss orders together, so that, if stock prices go down then users can limit their losses to the maximum stop-loss bearing capacity while if prices go up then it can be sold at the target profit. Zerodha GTT OCO (One cancels others) order facilitates users to create both the orders simultaneously on Kite.
Let’s take an example if you buy Wipro at Rs. 480 and you have a target to sell it at 10% upside or in case of negative price movement, you can bear a maximum stop loss of 5%. Thus, in that case, you can create Zerodha GTT OCO order wherein you can set the target price at 10% of LTP and stop-loss at 5% of LTP. As it is an OCO order henceforth, either target order or stop-loss order will be placed based upon the price movement and another order will be automatically canceled.
As shown in the image, you just need to enter target and stop-loss % to 10% and 5% respectively, and the trigger price field will automatically show the price. Now, users have to enter the limit price and quantity, at which, they want to execute the order. If the stock crosses the target trigger price then you will book profit whereas if the stock crosses the stop-loss trigger price, then the stop-loss order will be placed on the exchange at the limit price and you will have losses.
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