When the Good-Till-Triggered (GTT) entry price is breached, it means the specified trigger price set by an investor for a buy or sell order has been reached or surpassed in the market. The GTT order is a type of conditional order that remains dormant and only becomes active once the trigger price is hit. Here's what happens when the GTT entry price is breached:
Activation of the Order: Once the trigger price is reached, the GTT order transitions from being dormant to active. This means it will now be executed according to the conditions set by the investor (e.g., buy or sell a specific quantity of an asset at a specified price or better).
Execution of the Order: After activation, the order attempts to execute at the specified price or better. The execution will depend on market conditions and liquidity. If the market price is favorable and matches the order conditions (such as limit price for a buy or sell), the order will be filled.
Partial or Full Execution: Depending on the volume available in the market at the desired price, the order may be partially or fully executed. If only a portion of the order can be filled, the remaining part may stay active in the market until it can be fully executed, assuming the GTT order has not expired.
Expiration of the Order: GTT orders have an expiration date. If the order is not fully executed before this date, any unfilled portion will be canceled automatically. The expiration period for GTT orders can vary by brokerage but is typically set by the investor at the time of order placement.
Notifications: Investors usually receive notifications from their brokerage platform when their GTT orders are triggered, executed, or expired. This helps them to monitor their investments and make informed decisions based on market movements.
It's important to note that while GTT orders can help manage entry and exit points in the market, execution is not guaranteed, especially in fast-moving or illiquid markets where the price may surpass the trigger price without the order being filled.
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