How to do BTST trades at 021 Trade?
You can perform a Buy Today Sell Tomorrow (BTST) trade on 021 Trade by buying a stock using the Longterm product type today and selling the same stock the next trading day using the same product type.
Example:
Suppose you buy 50 shares of Infosys on Monday under the Longterm product type in 021 Trade. You can sell these shares the next trading day (Tuesday), even before they are credited to your Demat account. This type of transaction is known as a BTST trade.
After the purchase, 021 Trade earmarks the shares and allows you to sell them on the following trading day. Although the shares are not yet credited to your demat account at the time of sale, Depository Participant (DP) charges will still apply to BTST trades.
Advantages
- Allows traders to take advantage of overnight price movements without waiting for shares to be credited (which typically occurs on a T+1 settlement cycle).
- Suitable for short-term or momentum trading strategies.
BTST trades involve the risk of Short Delivery. Since you are selling shares that have not yet been credited to your demat account, the transaction depends on the original seller delivering those shares to the exchange.
If the seller fails to deliver the shares, your delivery obligation cannot be fulfilled. In such cases, the exchange may conduct an Stock Exchange Auction, and you may incur a penalty of up to 20% of the value of the short-delivered shares.
