What Is BTST Trading And Its Strategy In Stock Market_
                     What Is BTST Trading And Its Strategy In 
Stock Market?
Table of Content
What is BTST Trade?
Securities on which BTST applies on
Features and Important terms of BTST Trading
Charges on BTST Trades
Points to remember while applying BTST Trading Strategy
Conclusion
What is BTST Trading
● BTST Full  Form is Buy Today and Sell Tomorrow
● BTST Trading means when the individual trader or investor buys the  shares today 
and sell them tomorrow. 
● BTST is the type of strategy by which a trader take advantage of short-term market 
volatility in their favor by buying shares today and selling them tomorrow.
● A trader can apply BTST trading strategy in every segment of the capital market it 
can be either Equity, Currency, Derivative and Commodity market.
Know about what is depository system in detail.
Features and Important terms of 
BTST Trading
● Settlement cycle:  means that upon the completion of the settlement cycle, the 
buyer of the securities will get the delivery of shares and the seller will receive the 
funds.
● T+1 trade cycle: It is used in Equity trade. T represents the date on which the trade 
order was placed; T+1 represents the time it took to complete the trade.  
● T+2 trade cycle: It means that when the buyer buys the shares on T day(monday) 
and those shares reflect in your demat account on wednesday.
● Cash and Carry:  Also called basic trading the major difference between the spot price 
and future price of the asset. the goal of the strategy is to manipulate the price 
difference in order to make a profit before the shares arrive into your demat physically. 
Charges on BTST Trades
There are two way through which you could charge depending upon what is its BTST 
trades category:
1. BTST trade charges as per Intraday Trading: it means that if you buy the shares 
on T(day) and sell them on the same day.  Then it would be considered intraday 
trading and you will charge according to the intraday brokerage charge.
2. BTST trade brokerage charges as per T+n days:  If you buy shares on T day 
and sell those shares on T+1, T+2,  then in such cases, your broker will charge you 
equity delivery brokerage charges.
Know How to find btst and stbt stocks
Points to remember while applying BTST 
Trading Strategy
● Circuit Limit: put a circuit limit or trading limit of 20% on it. Moreover You can 
definitely plan a position at 3:15 pm if you predict a certain stock will open at the 
upper circuit. 
● Trade in well-known shares: If planning for BTST in trading. Then you should 
considered well-known shares of which people are aware.
● Entry and Exit Points:  If you are performing BTST Trade. Then your entry point 
should be between 3:15 pm to 3:30 pm.
● Good time for BTST trading: usually BTST  trade is the better option When the 
market is opening a gap up and a gap down regularly and the market is moving in a 
range.
● Trade in liquid stocks: liquid is those stocks that can easily buy and sell in the 
market, without impacting their price.
Conclusion
Trading can be a risky proposition and you can be easy minimize your risk and earn great 
profits by beating market volatility. It can be possible  with the help of  learning proper 
stock market skills and technique.
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