What is BTST and How to Benefit

What is BTST and How to Benefit




BUY shares TODAY and SELL them tomorrow under the BTST® segment.


Buy Today Sell Tomorrow® (BTST® ) is a facility that allows you to sell shares even one day after the buy order date, without you having to wait for the receipt of shares into your demat account.


BTST® relevant is relevant for you:


1. If you have you ever missed making a huge profit because you had bought the shares just one day back and you could not sell them as they were not credited to your demat account?


2. If you have ever found that squaring off your cash based transactions within a day is not profitable as one days time does not allow to realize maximum profit?


3. If you have ever thought of an intermediate option between cash and Margin trades where in you could make profits on volatile shares within one or 2 days of your buying them without a compulsory square off?


If you have ever faced any of the above situations, BTST® is for you.


Let us take an example.


Assume that you buy shares of ABC Limited at 11.00 a.m. today. Suppose, at 2.00 p.m. today, the price of this scrip has risen by Rs 10.


But you want to sell these shares tomorrow because you feel that the scrip price will rise further. But the shares would not have come into your demat account tomorrow. What can you do?


BTST® is the solution to your query. If you use a Margin Trade, you would gain only to the extent of the price rise that happens today I.e. Rs 10. However, if you wish to take advantage of the price rise over a longer time period, then you would use BTST®.


(Note that if you had instead bought shares in Cash and tried selling the same, you would have to wait for payout day before you can sell the share.)


So, you would purchase the share today at 11.00 a.m. and sell it say tomorrow using BTST® at 2.00 p.m.


In short, BTST® helps non-intra day square-off trading.


If you are a Cash Trader and found intra-day trading too unprofitable, BTST® gives 2 more trading days, thereby increasing the probability of better returns. So, even a Cash Trader may like to use BTST®.


If you are a Margin Trader and in case for some scrips you find intra-day speculative trading too unprofitable, BTST® gives 2 more trading days, thereby increasing the probability of better returns.


So, you can benefit from the virtually elongated settlement cycle that BTST® brings to you.

 

Happy investing