BTST vs STBT

                                                  BTST vs STBT

BTST (Buy Today Sell Tomorrow): When someone buys shares in the view of capturing the movement that could happen in the next trading day, Where in the stock which was brought in today's market are sold on the next trading day before they get delivered into one’s Demat account.

understand it with an example: Imagine for example a Pharma stock like Lupin is expecting a get approval from NDA’S in tomorrow's market. Listening to this news Ramesh has brought “Lupin”  at a price, expecting in tomorrow’s market it will go up. 

What happens: Here in BTST the stock you bought in today’s market you are selling it before it would get accounted into your Demat account.

Advantages: Firstly “ NO “ DP charges are applied second thing is that it applies to all Equity, Futures, and Options stocks.

Note: Some broker may not charge the Brokerage on BTST. Other charges are still applicable.

Apart from these please do remember not to trade in fewer liquidity stocks.

Because if you are trading with leverage then you would  buy today and sell it tomorrow

without the shares getting credited.. then you might face short of stocks because of

which you will face a penalty.

STBT : (Sell Today And Buy Tomorrow)  Which means selling shares today (which and buying it back in tomorrow’s trading.

Example: A stock is expected to deliver the bad result tomorrow because of it the share value is expected to go down. So Ramesh is selling the stock’s share in today's market and will buy in tomorrow’s trading at a lower price.However, a few points to be remembered.Firstly, STBT is only applicable to Futures and Options.

Secondly, if you are doing on equity then ensure to sell it before 3:20 pm, otherwise, there will be a huge penalty.

Note: Most of the  Brokers in INDIA would not give you STBT  on CNC(Equity), However, certain brokerages would not square off your STBT position from their end, you need to do it.

What happens: In case you forgot to square off your STBT positions in Equity Stock, then this is how the penalty is charged.

Firstly you need to wait for T+2 DAYS

Secondly, interest would be charged on the Highest value trade-in the last two days of trading

Let’s take a stock Reliance currently trading at 2150

We sell@2100 in today’s market quality of 100 shares. These are the stocks that you do not By the end of T+2 it made a high of 2150 and currently trading at 2090.

Still, you would be charged as follows

Interest would be anywhere between 1%- 20%. On the turnover

(2150*100)* 20/100= 43000(Maximum)

(2150*100)*1/100=2150(Minium)

So, as one could see with this example the Minimum charge is of 2150 and the maximum is 43000.

The percentage of interest is charged by the SEBI(according to me)

It varies from 1%-20%.

So ensure if you are doing a shot selling on Equity stock and your broker do not exit your positions, then ensure u do it before the market ends. Otherwise, get ready to pay a huge penalty.

Link for the Video is given below :

https://www.youtube.com/watch?v=gahm2DeQVa4