What is BTST Trades?

What is BTST Trades?

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.


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