How Does the BTST Trading Work?

How Does the BTST Trading Work?

BTST trades or BTST shares allow merchants to take the advantages of short-term volatility. On this commerce kind, buyers can simply buy right this moment and promote tomorrow. They’ll additionally promote the shares they have to purchase earlier than delivering to the Demat account. 

In easy phrases, they will promote the shares simply earlier than making the deposits within the Demat account. Learn the article to find out how BTST buying and selling works on-line. 

Which means of BTST and How the BTST works 

In supply fairness order, BTST which means takes the T+2 days for shares you buy for credit score into the Demat account. T refers right this moment to the Commerce of shares. The sellers additionally get the credit score within the account of T+2 days. 

Throughout this era, if the values of the bought shares improve, you can not promote the shares to make income for the reason that orders are regular. However, for those who place a money or carry order, you possibly can promote the shares quickly as you see the appreciation in values to guide income. 

BTST Trades Options 

  • The ability of BTST lets you promote the shares earlier than making credit score into the Demat account. You may simply execute the promote order as much as buying and selling days after the acquisition order. The shares are credited into your account by the third day after you possibly can create the common promote order.
  • The buying and selling BTST facility is totally different and offered by some stockbrokers in India. 
  • You may as well use the BTST facility on scripts by a stockbroker. Nevertheless, you possibly can ask the stockbroker to share the important particulars so you possibly can transact the authorised BTST shares. 
  • Many brokers don’t present BTST buying and selling for SME corporations
  • You can’t use the BTST facility within the T2T section for shares. It’s as a result of it’s essential to ship the commerce to commerce shares.
  • There are not any particular orders or complicated step sorts to finish the BTST shares. 

Advantages of BTST Buying and selling 

Merchants can benefit from the checklist of advantages of BTST buying and selling. These are:

  • In BTST trades, you possibly can simply promote the shares even earlier than depositing with DP. Consequently, you do not want to pay the DP fees. 
  • In the event you execute the intraday commerce, you aren’t anticipating any revenue earlier than the closing of the market, and you’ll rework the order into BTST and choose to promote it on the subsequent day.

Cons of BTST Buying and selling

Together with the advantages, BTST buying and selling additionally comes with drawbacks. Listed below are the drawbacks of BTST buying and selling 

  • Numerous stockbrokers don’t present BTST companies. Somewhat, it completes the CNC transactions. 
  • In case your account doesn’t have sufficient stability, it’s essential to pay the margin penalty on BTST trades. 
  • If the default sellers used to ship the shares on the settlement date and did not ship the shares for the promote order, you need to pay the penalty. 


BTST buying and selling wants expertise and in depth observe. You need to use the correct technique earlier than making trades to keep away from errors and shield from incurring losses. 

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