The Full Form of BTST is Buy Today Sell Tomorrow.
BTST (Buy Today, Sell Tomorrow) is a facility that allows customers to sell shares before they are credited into a demat account or take the delivery of shares. The decision has to be made in 2 days.
This facility is also known as ATST or Acquire Today, Sell Tomorrow. The reverse of BTST is called STBT i.e. Sell Today, Buy Tomorrow.
This facility is offered by most of the stock brokers in India likeZerodha,ICICIdirect, etc., where you can buy a stock today and sell it tomorrow.
In a normal equity delivery trade (buy/sell of stocks using CNC order), the transaction is complete in T+2 days where T is the day of trading. The buyer gets shares in his demat account and the seller gets money in T+2 days. So, if you buy some shares of a company on Tuesday, the shares will be credited in your demat account on Thursday. While counting T+2 days, holidays in exchanges are excluded. So, if there’s a holiday in between then the delivery period is extended.
What if you got an opportunity to book the profits or losses in between those 2 days? You cannot take this opportunity as it’s a normal order. This may result in losses for the trader.
BTST solves this problem of traders by allowing them to buy or sell their securities before these are credited in their demat account. This helps traders to benefit from short-term volatility in the price of the stocks.
BTST
means
Buy Today Sell Tomorrow
Leave a Reply
You must be logged in to post a comment.