BTST Trade in Zerodha
BTST (Buy Today Sell Tomorrow) trade is a type of trading strategy where an investor buys shares on the current trading day and sells them on the next trading day. Zerodha is a stockbroker that offers the option to trade in BTST for its clients.
BTST is a trading strategy that allows an investor to buy shares on the current trading day and sell them on the next trading day. This strategy is typically used by traders who believe that a stock's price will increase overnight, allowing them to make a profit by selling the shares the next day.
However, it's important to note that BTST trades are considered as intraday trades, and hence the investor will be required to pay the intraday brokerage charges and also the additional taxes as per the government regulations. Additionally, BTST trades are considered to be risky as the market conditions can change quickly, and there is always a possibility of the stock price going down instead of up.
Here are a few tips for BTST strategy
- Keep an eye on the market conditions, stock prices and regulations before making any decision to trade.
- Always have a stop loss in place to minimize your losses.
- Use technical analysis to identify stocks that have a high probability of going up in price.
- Never trade with more money than you can afford to lose.
- Keep a close eye on the stock's fundamentals and news to avoid getting caught in a trap.
Zerodha, a stockbroker, does offer BTST trading and the charges for the same will vary depending on the type of account and the value of the trade.
For Zerodha's BTST trades, the charges are as follows:
- Intraday brokerage charges: Zerodha charges a flat brokerage of 0.03% or Rs. 20 per executed order, whichever is lower, for intraday trades.
- STT (Securities Transaction Tax): This tax is levied by the government on the sale of securities and is currently 0.025% of the sale value.
- GST (Goods and Services Tax): Zerodha charges 18% GST on brokerage and transaction charges.
- Clearing charges: These are charges levied by the clearing corporation and are typically around 0.03% of the trade value.
It's always recommended to read through the terms and conditions of the Zerodha BTST trading feature before executing any trade.
How to do BTST Trade in Zerodha?
- Log in to your Zerodha account.
- Choose the stock you want to trade and enter the number of shares you want to buy.
- Select CNC as the product type.
- Select "Buy" and place the order.
- After you buy the stock today, the stock is supposed to be delivered into your Demat account in T+2 days because of the settlement cycle . However, in a BTST trade, you sell the stock the next day before the stock is delivered to your demat account.
- Once the order is executed, you can sell the shares on the next trading day by repeating steps 2 and 4, but this time selecting "Sell" instead of "Buy."
Please note that Zerodha also have a feature called "BO" (Bracket Order) which you can use to place both buy and sell order together with stop loss and target, which will be automatically triggered when the stock reaches the stop loss or the target.
BTST is a trading strategy where a trader buys shares on the current day and sells them the next trading day. However, not all stocks are eligible for BTST trading.
In general, only stocks that are traded on the NSE and BSE and are part of the cash market segment can be used for BTST trades.
To check if a stock is eligible for BTST trading, you can check the stock's listing on the NSE or BSE website. Additionally, Zerodha platform which is a popular trading platform in India,
has a filter of "F&O" which you can use to filter out the stocks which are not available for BTST, so that you can only see the stocks which are eligible for BTST.
Please note that even if a stock is eligible for BTST trading, it may not always be the best idea to execute a BTST trade.
This is because the stock's price can be affected by many factors such as market conditions, company news, and economic events.