The trigger price in a GTT (Good Till Triggered) order only determines when the order is placed on the exchange. The actual execution price depends on market conditions at that time.
Reasons for Price Difference:
1. Market Order Execution: If linked to a market order, it executes at the best available price after the trigger.
Example: Trigger price ₹100, but price jumps to ₹102. The order executes at ₹102.
2. Limit Order Conditions: If linked to a limit order, it executes only at the limit price or better.
Example: Trigger and limit price ₹100, but price rises above ₹100 before execution. The order won’t execute.
3. Volatile Markets or Low Liquidity: Rapid price changes or limited buyers/sellers may lead to execution at the nearest available price.
Example: Trigger price ₹100, but no sellers at ₹100. Order may execute at ₹101 or higher.
4. After-Market Sessions: GTT orders triggered in pre-market or after-market sessions can face price fluctuations due to lower liquidity.
Note: To reduce price deviations, Groww places GTT-triggered market orders as limit orders with a set margin (e.g., 10% below the trigger price for sell orders) to protect against unfavorable price movements.