BTST stands for Buy Today, Sell Tomorrow. It's a trading strategy that
allows investors to sell shares before they are credited to their demat
account—typically, before the T+1 settlement is completed.
🔍 Key Features of BTST Trades:
Buy on Day T: You purchase shares on a particular trading day.
Sell on Day T+1: You sell the same shares the next trading day, before they are
delivered to your demat account.
No Need to Wait for Settlement: You don't have to wait for the T+1 settlement
to be completed to sell.
Avoiding Delivery Charges: Since you sell before the shares are credited to
your demat, you may avoid certain delivery-related charges.
✅ Benefits of BTST Trading:
Leverage Short-Term Price Movements: Profit from overnight price movements without
holding the stock long-term.
No Need for Full Delivery Margins: Reduces the capital required compared to
regular delivery trades.
Faster Trade Cycles: Quick entry and exit.
⚠️ Risks to Consider:
Auction Risk: If the shares you bought are not delivered by the seller (due to
short delivery), you won't receive them, and your sell trade could fail,
potentially leading to penalties.
Volatility: Sharp price movements overnight can lead to unexpected losses.