What is BTST and STBT Trading
What is BTST Trading (BTST Trading For Beginners): Buy the stock today and Sell it tomorrow is called BTST (Buy Today Sell Tomorrow) trading, many times a stock is closed at the price today, the next day it opens in more or less. Taking advantage of this is called BTST trading.
Example: Suppose there is a stock which has fallen 10% today, now if you think that this stock has fallen a lot, tomorrow it will go up a bit, on the basis of this, if you buy the stock today, sell it tomorrow is called BTST Trading, BTST Trading means buy today and sell tomorrow.
What is STBT Trading (STBT Trading For Beginners): Just opposite BTST, there is another trading style which is called STBT (Sell Today Buy Tomorrow) which means to sell today, buy tomorrow, it has to be sold first and the next day when Share If the price falls further, then the buy is done, just as the share is selected for BTST, in the same way, the stock is selected for STBT too.
The rules for doing BTST and STBT are almost the same, the only difference is that in BTST we will buy today and sell tomorrow and in STBT we will sell today and buy tomorrow. The difference between Sell and Buy is counted in profit.
BTST trading can be done in both cash market and futures market but STBT trading can be done only in the futures market, if you buy in the cash market, you have to pay full money from your pocket and if you buy in the futures market, you get margin so that you can buy more quantity with less Money.
Whether margin is available on BTST or not depends on the broker to a broker like Zerodha does not provide any margin on BTST whereas ICICI Direct gives margin up to 5 times which has to be settled in 5 trading days. Margin trading is not allowed on STBT in the Indian stock market but margin trading is allowed on BTST.
The biggest risk in BTST Trading and STBT Trading is Gap Up and Gap Down Opening, due to which there can be both unexpected gains or losses.
BTST Trading Delivery Settlement
The delivery of shares in the Indian stock market takes place in T+2 Trading Days in which T means the day when the shares have been bought, apart from this it takes 2 days which is known as Clearing Day and Settlement Day. On the third day of the day the shares are bought, those shares come in the Demat account.
BTST trading takes place in T+1 day, due to which shares do not come in Demat account in BTST trading because it takes at least 3 days for shares to arrive in Demat account
In BTST Trading, STT (Security Transaction Tax) is charged up to 10 times more than Intraday, and DP Charges, which are also called Demat Charges, are not applicable, all other Charges are normal as they are used in all.
It is necessary to have a lot of skill and knowledge for stock market trading, those who are new to the stock market should first learn the basics of stock market trading and then start trading by making a trading strategy.
I hope you have understood what is BTST trading and what is STBT trading Tell and share this post on your social media and keep visiting the blog.
