Investors placing GTT (Good Till Trigger) orders need to recognize that there is no up-front margin or fund requirement for a GTT order. Investors are able to set up GTT orders without having to reserve any funds in advance, which is especially beneficial for implementing automated trades with ease.

Funds Must Be Available on Trigger Day

Although there is no immediate margin requirement for a GTT order when it is placed, the system checks that there are sufficient funds or margin on the day that the GTT order is triggered. When the order is triggered, if there is not enough money in the account to execute the trade, the order will be rejected. The trading system is designed to ensure trades occur when an investor has enough money to complete the trade.

Implications for Traders

The investor is subsequently advised to keep an eye on their account balance to be sure there are funds available to execute their triggered order. This is important for planning and preventing orders from failing to execute, and to provide all needed conditions to successfully deploy the GTT as part of an overall trade plan.