What are BTST and STBT? (2024)

FAQs

What are BTST and STBT? ›

BTST involves buying stocks and selling them the next day, used when a stock price increase is expected, whereas its opposite version, STBT, is selling stocks today and buying them back the next day, used when a price decrease is anticipated.

BTST is an abbreviation for Buy Today, Sell Tomorrow whereas, STBT means Sell Today, Buy Tomorrow. In BTST, you can buy the stocks on T- day and sell them before receiving them in your Demat account on T+2. The STBT facility allows the investors to sell the shares first and buy them later.

Sell Today Buy Tomorrow (STBT) is a facility that allows customers to sell the shares in the cash segment (shares which are not in his demat account) and buy them the next day.

BTST stands for Buy Today, Sell Tomorrow. The Indian capital markets follow a T+1 settlement cycle . To learn more, see What does settlement cycle mean?

BTST stands for "Buy Today, Sell Tomorrow." It is a trading strategy used in the stock market. BTST trading is based on a simple premise: purchase shares on one day and sell them on the following day, ideally for a profit.

2. The biggest risk associated with BTST is short selling. These trades happen without shares actually settling in your account. If the seller defaults on the delivery of the stocks on time, you won't be able to meet your obligations as the seller.

Price breakouts in candlestick charts

The 15-minute candlestick trading chart showing the share's highs, lows, closing, and opening prices is an excellent tool to identify BTST stocks. The most price action happens during the last leg of the trading session after 2 pm when intraday traders start settling their trades.

Let's explore some of the key benefits of this trading strategy: Capitalising on Short-Term Volatility: BTST trading allows traders to exploit short-term price movements and take advantage of overnight fluctuations in the market. By buying today and selling tomorrow, traders can earn quick profits.

Which stocks are not allowed for BTST? ›

Trade to trade stocks and stocks under GSM or ASM are not allowed for BTST trading.

BTST trades are those trades where traders take advantage of short-term volatility by buying today and selling tomorrow. Under this facility, traders can sell the shares- which they have bought previously- before they are delivered to their demat account or before they are credited into their demat account.

For Buy Today Sell Tomorrow (BTST) trades, a fee of Rs. 15 plus 18% GST will be levied for selling any scrip from the holding of any shares. If you buy and sell the next day, the shares will be received in your DP, hence the charges will be applicable.

STBT Strategy

The STBT (Sell Today Buy Tomorrow) strategy involves selling shares that you don't own, anticipating a drop in their price overnight. Traders borrow shares to sell, aiming to buy them back at a lower price the next day, profiting from the price difference.

Let's explore some of the key benefits of this trading strategy: Capitalising on Short-Term Volatility: BTST trading allows traders to exploit short-term price movements and take advantage of overnight fluctuations in the market. By buying today and selling tomorrow, traders can earn quick profits.

In BTST, you have the choice to sell the shares the same day or tomorrow. In intraday trading, you have to sell the shares on the same day of order execution or convert the trade into a delivery trade. The trader gets 2 days to settle the trade without being delivered to the demat account.

What is the ideal time to trade in BTST? The best time to acquire BTST stocks is half to an hour before the market closes and then selling it the next day at the earliest.