What is BTST Margin blocked?

What is BTST Margin blocked?

BTST stands for “Buy Today, Sell Tomorrow”. It is a trade strategy where you purchase a stock to sell it immediately. However, the broker blocks a certain amount of funds while executing the BTST trade, known as the BTST margin. 

This blocked margin typically represents a percentage, often 20%, of the sale proceeds. The BTST margin is a temporary hold on a portion of your funds to ensure you can deliver the shares you sold even though you didn’t technically receive them. 

The margin for BTST trades will remain blocked until settlement.

It comprises 100% of the selling value plus an additional 20% as an upfront margin, totalling 120%. 



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