As a trader most of have heard about intraday and delivery trading, but do you want to know what is BTST and how to do BTST trading in Zerodha?
BTST is the acronym for Buy Today Sell Tomorrow and as the name suggest it is the process of buying shares today and selling it tomorrow i.e. before the shares get credited to your demat account.
But how to buy and sell BTST shares?
Let’s find out!
How to Buy BTST in Zerodha?
To place a BTST order in Zerodha, just log in to the Zerodha Kite web or mobile app. Once you log in just follows the steps given below:
- Choose a scrip (RPower) from your Watchlist and click on the Buy option.
- Input the Quantity and select CNC order type.
- Select the Limit or Market Order.
- Swipe the button to place Buy Order.
The share get displayed in your Order tab.
How to Sell BTST BTST in Zerodha?
Now when it comes to selling the BTST share in Zerodha Kite, here you have to go with the similar step as discussed above.
The only thing you have to consider is to select the same stock that you buy a day before or on the same day.
So moving ahead with the steps:
- Select the scrip (RPower) from the Watchlist when the price increases from Buy Value.
- Click on Sell button.
- Enter the Quantity and the click on CNC.
- Now select the Limit or Market Order.
- Swipe the button to confirm your Sell Order.
The sell share/s is displayed on the Order List.
Since BTST is the process of buying the share today and selling it tomorrow, here trading process would be different from the one in intraday.
In intraday trading, if you go long for a particular share, you have to:
- Choose MIS order.
- Once the order is placed you have to select the share from the Order book and not from the Watchlist to exit the position.
On the other hand, in BTST order, the trader has to place the CNC order.
- To place the sell order you have to choose the share from the Watchlist.
- The settlement of both the shares takes place after T+1 or T+2 days and without getting your holdings in the demat account you would be able to place the CNC trade and can make profit.
- However there is the risk of short delivery.
In BTST trade, you are the buyer and seller of the share at the same time before the settlement process takes place. Now if your seller fails to provide the share then you are short of the shares you are obligated to sell. In such case of short delivery you have to face the penalty fees, which is around 20% of the value of stocks you are short of delivering.
We expect this helps you understand what BTST is and how to sell stocks using BTST. If you have any questions, please contact us.
