If you are a beginner in the stock trading world, you are also heard about the BTST trades, to buying and selling. However, many beginners face difficulties understanding BTST stocks and their transaction meanings. BTST trades or BTST stocks permit the traders to benefit from the short-time volatility.
In this trade, the investors buy today or sell tomorrow. In short, they sell the shares they buy before the demat account delivery. On the other hand, they can also sell the shares before they are deposited in the demat account.
This article will tell you the features and benefits of BTST stocks. If you want to take a step toward BTST stocks, you must read all the facts in this article.
What is BTST, and how does it Work?
BTST takes the T+2 days for shares that you purchase to make credits in your demat account during the equity delivery order. In this, the T refers to the day on which you trade the shares. The seller will also get the credit in the T+2 days in their demat account.
If you know how to analyze stock market trends, and observe the increase in share values that are bought by you, then you are unable to sell the shares to generate profits since the order is normal. On the other hand, if you place a cash or carry order, then you can easily sell the shares whenever you see an appreciation in the value of the shares. In this way, you can easily generate profits.
Features of BTST stocks
There are many features of the BTST stocks. If you are interested in doing the BTST trading, then you should make look at the features first.
- BTST trading facility is different and provided by some stockbrokers
- The BTST stocks permit you to sell the stocks before crediting them into the demat account
- You can also execute the stock sell order for upto two trading days after purchasing the order.
- The shares are credited to your demat account by the third day, after which you can generate the regular sell order.
Pros of BTST trades
Traders can enjoy the many benefits offered by the BTST trades. These benefits are
- In BTST stocks, you can easily sell the shares before they are deposited in a demat account with the depository participants. The best thing is that the trader does not need to pay any DP charges.
- You can easily make the short-term volatility in the stock market with the help of the BTST transactions.
- If you are involved in intraday trading, but do not see any profits before the closing of the stock market, then you can easily convert the order into BTST and select to sell it on next day.
BTST stocks need experience and extensive practice. You must opt for the proper strategy before making the trades. If you acquire the proper strategy while making the trades, then you can avoid mistakes easily and protects yourself from incurring losses.