BTST/ATST( Buy/Acquire Today Sell tomorrow)
Traders,
In this blog we shall talk about BTST/ATST which stands for Buy Today / Sell Tomorrow or Acquire Today / Sell Tomorrow.
This is a facility offered by most of the stock brokers in India (including Zerodha) where you can buy stock today and sell it tomorrow before you get the delivery of the shares. Using this facility has its own merits and demerits and you will need to understand the equity settlement cycle before we go ahead with the topic.
In India, we follow a T + 2 settlement cycle when trading stocks (please note we are talking about only stock/equity trading).
What this means is that if you buy 100 shares of Reliance on Monday, you will get delivery of it (get delivery means it will be credited to your demat account) only on Wednesday evening (Monday is T day, Tuesday T + 1 day and Wednesday T + 2 day). Similarly if you sell shares on Monday, you will receive the funds into your trading account on Wednesday (T + 2 day). Please note that Saturday/Sunday/Public holidays will not be considered for delivery, so if you buy some stock on Friday, you will get it in your demat account only on Tuesday evening (Friday is T day, Monday is T + 1 day and Tuesday T + 2 day).
Another query people usually have is what is a trading and demat account, what is the difference? Demat account is basically an account where your stocks sit in a dematerialized format and this is the only use of the demat account. It is very similar to a safety locker in the bank where you keep your valuables, in the bank locker you keep the valuables in physical form and in a demat account you keep your stocks in an electronic form. Trading account is where all the action happens, trading account is where you keep your funds, trading account is where you buy/sell stocks/F&O, trading account is where your futures and options contract stays, where the intraday position stays. In case you buy a stock for delivery in your trading account, after 2 days the stock is credited to your demat account mapped with your trading account and when you sell stocks the same is debited from your demat account. For trading F&O, you don’t require a demat account as F&O are contracts and they stay in your trading account till the end of expiry.
Getting back to the main topic,
When you buy a stock, ideally you should sell it only once you get delivery to your demat. So if you buy some stock on Monday, you should ideally sell it only on Thursday onwards. But this is not an ideal world and sometimes opportunities arise much before that and people would want to take an exit decision before getting delivery. At Zerodha we let you buy and sell before getting delivery. What this means is that if you buy a stock for delivery on Monday, you can sell it on Monday, on Tuesday , on Wednesday and Thursday onwards. A common phrase used in the stock markets today is BTST/ATST and used for trades when you buy stock for delivery and sell the immediate next day.
At Zerodha, If you want to buy a particular stock for delivery, the product type that you need to use while purchasing is CNC – Cash & Carry (you need to have a demat account for taking delivery of stocks, otherwise this option will not be enabled).
Assume you bought 100 shares of Reliance on Monday using the product type CNC and the present price of Reliance is Rs. 800. To purchase as CNC, you will need Rs. 80000 in your trading account (Rs. 800 x 100).
First Scenario: You bought at Rs. 800 in the morning and by 3 PM you saw the price is Rs. 810. You decided to book the profit and you sold the Reliance as CNC. Though you have bought and sold as CNC, this will be considered as an intraday trade and all taxes/brokerage will be according to intraday charges.
Second Scenario: You bought on Monday and Tuesday the price of Reliance was Rs 810. You decide to sell the shares, so you choose the option CNC and sell it (you are doing a BTST/ATST trade). On ZT, we show all these positions as T1 Holdings. T1 Holdings will show you the stocks that you have bought the previous day.
Viewing T1 Holdings on Zerodha Trader
Third Scenario: You bought on Monday and the price of Reliance went to Rs. 810 on Wednesday. You haven’t still got the delivery as it happens only on Wednesday evening. You can still sell using the CNC option. Again, if you want to see such holdings you will have to click on T1 Holdings as shown in the above picture.
Fourth Scenario: You bought Reliance on Monday and on Wednesday evening you get the delivery of stock, if you want to sell these shares anytime after Wednesday you can sell it using the CNC option. If you want to view shares which are in your demat account, click on the Holdings link as shown in the above picture.
Merit of having an option to do BTST/ATST (sell before getting delivery of the stock to your demat account) is that you have the flexibility of exiting anytime after buying the stock. Also when you do BTST/ATST, you don’t have to pay any DP charge. DP charge is what you pay when stocks are debited from your demat account (IL&FS charges Rs. 8 + NSDL charges Rs. 5), for every stock/scrip sold at the end of day, no matter how many times you sell during the day. And because you are selling the stock before it hits your demat account, you don’t have to pay any DP charges.
Update: BTST transactions are settled by first crediting shares to your account on the day it is received from the Clearing Corporation. On the same day, your shares will be earmarked for delivery against the sell leg of the transaction you would have already carried out. By transferring the shares to your account, subsequently earmarking and then debiting for sale settlement, you will be ensured of getting credit for all corporate actions like dividends, bonus directly in your name. Similarly, if any TDS was deducted for dividends, the same would be filed against your PAN and would reflect in your 26AS instead of it being passed on from the Broker’s PAN. Since the shares get credited to your demat account and then debited for BTST transactions, there will be DP charges that will be applicable like normal delivery transactions.
Demerits: If traders are looking to convert intraday positions to delivery, you need to keep in mind that STT (Securities Transaction Tax) will go up almost 10 times if you decide to keep your intraday positions overnight.
Stocks sometimes are moved to T2T Segment(Trade to Trade Segment) by the exchanges to curb speculative interest. When a stock is moved to T2T, you will have to compulsory take delivery if you buy and give delivery when you sell. When a stock is moved to this segment, you will not be able to do intraday trading or BTST/ATST trading.
How do you know if a stock is moved to T2T segment? : If you look for the stock in either of the exchange websites, you will see if it is in normal market or T2T. Also another way to know this is, while adding the stock on the marketwatch, you get an option to choose EQ or BE, EQ is for normal market and BE for T2T. If the stock is trading as BE and not EQ, it means the stock is in T2T.
The most important thing to know about BTST/ATST is:
RISK OF BTST/ATST( Selling shares before you have received delivery of the shares to your demat account):
Let me explain with an analogy:
You have deposited a cheque into your bank account for Rs. 10000 and are expecting the cheque to be cleared by Wednesday evening, you write a cheque in favor of a friend on Tuesday. You know that your friend will present the cheque to his bank on Wednesday and by the time it reaches your bank, the other cheque would have cleared. Ideally, if the cheque you deposited gets cleared on Wednesday, the cheque you have given to your friend also clears. But we are not in an ideal world, what happens if the cheque you deposited into your bank account bounces on Wednesday? Yes the person who gave you the cheque is penalized by his bank, but you are also penalized now because your cheque would have also bounced on Thursday.
Similarly when you buy shares and sell it before delivery, what happens if you don’t get the delivery?
This is called short delivery (could be partial/complete), this would happen when the person who sold you shares doesn’t deliver stocks to you, this could be because the other person had shorted for intraday and didn’t cover his positions, stocks hitting upper circuits and similar reasons. The role of the exchange is to ensure that when you buy stocks, you get it!!! So what the exchange does is that on T+2 day(between 2pm to 2.45pm), it conducts an auction and purchases the stock which the other person defaulted to give you and this is credited to your demat account on T+3. The other person is then charged with the auction penalty which can sometimes be as high as 20% of the stock price or more.
Read this blog for understanding short delivery.
So when there is a short delivery, the stocks that you bought on Monday, instead of you getting delivery on Wednesday (T +2) you will now get it only on Thursday (T+3).
Here is the problem that can arise when you do a BTST/ATST trade and there is a short delivery.
You bought shares on Monday and you sold them on Tuesday, so you assumed that the person selling you shares on Monday will deliver it to you on Wednesday evening and what you are selling on Tuesday will be adjusted with stocks you receive on Wednesday. But unfortunately you had a short delivery, so on Wednesday evening you don’t have any stocks, so what happens is that on Thursday when you are supposed to deliver the stocks, you don’t have any (stocks from auction will come to you only on Thursday evening, but what you sold on Tuesday has to be given to the exchange latest by Thursday morning). In such a case, similar to the cheque bounce example, you default. When you default, the exchange will now put that auction penalty on you.
Confused??
Basically what you need to remember is that when doing ATST/BTST trading, try trading only on liquid A group stocks, because the short delivery risk is reduced and hence chances of you having to face an auction penalty. The auction risk goes up quite a bit when you trade ATST/BTST on illiquid stocks. Please note that whenever you decide to sell stocks before taking delivery, you are taking the onus of any auction penalty that may arise because of short delivery.
Hoping that none of you have to ever face an auction penalty,
Happy Trading,
Nithin Kamath
Founder & CEO @ Zerodha. Partnering startups through Rainmatter. Love playing poker, basketball, and guitar. @Nithin0dha on Twitter. | Personal website: https://nithinkamath.me
Thank you
Sir do you charge for the response you give to the queries ?If yes,pl quote amt. I am interested in getting notified for the services. Pl mail the reply.
Ramakant,
The entire Z-Connect section is done for community help, everything is free, you can ask your question in an appropriate blog, and will be more than happy to answer.
Cheers,
Dear Zerodha,
First of all , i really thank to zerodha for the low brokerage fees and appreciate sincere efforts of nithin kamath.
Sir, i am asking this question to you on behalf of my three brothers trading in zerodha, their client client id are : *********
I understood concept of BTST and further no explantion required. But i would like to confirm the liquid stock and safe for trading BTST. Below is the list of few stock please confirm safe for BTST.
Please note all stocks are NSE.
NSE : VIJAYA BANK, DENA BANK, CENTRAL BANK, ANDHRA BANK, UNION BANK OF INDIA, IDBI BANK, SYNDICATE BANK, BANK OF INDIA, STATE BANK OF INDIA, CORPORATION BANK, UCO BANK , CANARA BANK.
Please please advice and enlighten me with your knowledge and thoughts.
Thanks in advance.
Nagesh
Nagesh, best not to share your client ID’s on an open forum, I have removed it. The stocks you have mentioned are all liquid stocks, so the risk of BTST will be quite less on them.
Sir, can we do btst or intraday in alok industries? ? Will the delivery happens promptly in this counter?? Please advise
Hmmm.. tough to say, this is like luck of the draw.
similar to BE,BL etc………what is SM ? (Panache-SM)
Can i do intraday in SM ???
Can i do BTST in SM ??? or Should i wait untill i receive my delivey ?
Please explain me in detail about SM series
Thanks in advance
The SM segment consists of stocks in the SME sector. You can make intraday trades in SM, but not in ST.
What about btst for sm stocks?
Sir, do we require to purchase SM stocks in lots ? Can’t we buy them in quantities as we want ?
Hi sir,
Can i get full list of Liquid stocks ?
Sorry for the basic question.But i am new to this market and also in Zerodha.
Hi sir,
Can i get full list of Liquid stocks ?So that i can check when i am doing BTST
Sorry for the basic question.But i am new to this market and also in Zerodha.
Parthkumar
As a general idea, trade in stocks which have a volume of over 5 lakhs.
And if you are a beginner, try for Large Cap stocks, in the beginning, to learn and avoid making major losses
Hello sir
if my zerodha client ID share to other(i.e. unknown person) by mistake what will happen?
Is SRF a A group liquid stock.
Hi, Mr. Nithin kamath/ Nagesh, please explain me BTST, i unable to get it. (Dr.Bharat Patil,09637232342)
can I join zerodha. Since its not available in nagpur,Maharashtra
Yes, you can. Leave your contact details here: https://zerodha.com/open-account
How I can work for you Re take frenchse for businees sudhir 9424557015 & 8306781108
i do btst..how to escape heavy stt charges? should i take delivery and then sell?
If you hold anything to the next day, STT is 10 times more than intraday. No way to escape this. You can probably consider futures trading.
Like If I purchased a share on monday..i will get the delivery by Wednesday evening,(maximum by thursday).Then if i sell the share (bought on monday) on Wednesday(to avoid DP charges)so i will need to deliver that share by friday..bcoz till friday i will surely get my shares and i can also deliver it to the seller. This way can i avoid the risk of short delivery ?
Yeah you can, but there is still a slight risk selling on wednesday. What if exchange settles you in cash during auction and not in stock (if there is no one tendering shares in auction). In this case, you will have no stock on friday.
Hi,
i bought a liquid stock (Justdial) ( just 50 shares ) on delivery on Wednesday. And on Friday, i sold it ( from my DP – the same 50 shares which i had bought). After the trading day(Friday), i got a mail stating “Auction bill” and it seems like i was settled in cash for the stocks i bought.
Now, looks like i too have short sold. Unfortunately, given that its a weekend, i have not been able to get in touch with the broker to understand what just happened and what is the next course of action. Request you to kindly share your thoughts on this.
You’ll now face the auction penalty too. At least that is what I understood.
Minimum how much the auction penalty .if we do BTST
Naresh, check this post.
Sir, what are dematerilization and rematerialization and when the charges(150 Rs per certificate/per day) incur to me if i do delivery trading
Rematerialisation is converting shares held in demat form to physical share certificates and dematerialisation is vice-versa. This is only charged if you were to rematerialise/dematerialise shares. Nothing that effects your regular trading. 🙂
Sir my shares had gone into holdings t1 position how can I sell them and how the funds will be added to the account sir
I brought wipro on morning Friday(29/03/2019) in CNC , On monday i can’t see wipro on my holding Page. But I see in my console holding
Today is a settlement holiday. On settlement holidays, share delivery isn’t settled and so these stocks are unavailable for selling and so unavailable on the trading platform.
Dear Rahul,
Your purchase of XX quantity of YY share was short delivered. You will either have your purchased shares delivered to your demat account or the funds credited to your ledger (in case of non-receipt of stock) by 2020/06/15. You can read the consequences of short delivery here.
i sold the stock next day how do i remedy this now
Actually you charge dp charge on btst as you have mentioned above there should be none but on contarry i have been charged i have also mailed you but no reply. Please look into the matter. As my acc was clearly showing that my shares are in (t1) .
Best create a ticket on our Support Portal.
Sir, I bought mmtc share of 1600 no. On 3/3/21 but shown Short delivery. But on today 1600 shares r not showing and amount was deducted. I m trying to contact zerodha.. But customer no. Is useless no one is responding.. My Rs. 76000 is stuck in… Not show ing in my account. Pls help me sir…
Hi, i want to ask you a question that is confusing me a lot. Sometimes I see nudge, n thats a warning, so i dnt do btst trade. But wen on some shares like tata power n niit i dnt see any nudge on t1 day. Can i sell these particularly without having any penalty, because i dnt see any budge. The question is, wen we see nudge we get penalty, do we get penalty also wen we dnt see a nudge on selling on t1 day
Sir am having account on zerotha.if I sell the stock on btst trade on same day or before I am getting delivery is there any charges or penalty for me.hope me reply soon
Hi I have bought some shares on Monda( cnc) and Tuesday I sold it
But yet I do not see amount credited to Zerodha account. By when I will get it
Please send an email to [email protected] from your registered email Id for account specific queries.
Hi Suppose I buy a share on Monday(t), share prices went up on T+1 i.e Tuesday and hence I sold it and again on t+1 the same share prices fell and I bought it again, is there any risk of short delivery.
No, the trades on T+1 are considered intraday and net-off against each other.
Hi
I would like to know what kind of stocks are only available for BTST. Like i know BE group of stocks you can’t sell tomorrow after buying today. you can only sell after it gets delivered to your demat account.
thanks.
You can trade all stocks in the EQ category in BTST.
I purchased HESTERBIO on Apr 29, 2020. Its is in EQ category using CNC order. When I tried to sell on same day it says BTST and INTRADAY Blocked for this share. Called your support, they said I should have converted it to MIS and sold it on same day! Does this make sense????
I believe CNC and MIS is just an indication to trading system that whether to square off the trade automatically or not. If i can sell MIS on same day why cant i sell CNC on same day? Infact with CNC order I ensured that I have full balance and not leveraging the trade.
Do you have any valid explanation of this or you are still hiding issues in trading system?
Hey, that shouldn’t happen. Can you email me details of this trade on matti[at]zerodha[dot]com. Will check what went wrong. Also will check why you were given the answer you were given.
Hi Matti
I have sent you the required details on May 1. Please check this asap as i m loosing money daily!
Hey Gaurav, missed your email. Having this checked.
Sir i want to sell my purchased share ehich i bought throuth cnc please send me the steps how can i sell my share after purchasing 2 days.
You simply need to place a sell order for the same stock using the CNC product code, Rahul.
Hi Nithin,
Thanks for the about information on BTST… what are “liquid A group stocks”… and “illiquid stocks” just few stocks names if you mention that would be helpful….
Regards
Smitha
What happens if a BTST happens on ex-date of rights issue…..buy on ex-date but sell next day ….
Because the stick price would be reflected as per the rights issue but the number of stocks is not reflected
can you pls throw some light on this ?
Hallo Sir,
Can you explain this statement-“the other person had shorted for intraday and didn’t cover his positions, stocks hitting upper circuits and similar reasons”
Demerits: If traders are looking to convert intraday positions to delivery, you need to keep in mind that STT (Securities Transaction Tax) will go up almost 10 times if you decide to keep your intraday positions overnight.
Wht is meant by above statement
Intraday trades will automatically be closed by exchange right then why in statement it is written ‘if traders want to convert the intraday to delivery’ or why it is written ‘if u keep intraday positions overnight’ is it possible?
And also one more doubt:
What is STT and how much is it and why it will be 10 times when you keep the intraday positions overnight??
Stocks sometimes are moved to T2T Segment(Trade to Trade Segment) by the exchanges to curb speculative interest.
What speculative interest??
This article was very useful to me as I am new to intraday trading and short selling. Thank you so much for such a detailed and useful information.
If i will Buy share ICICI Bank on Tuesday to Sold it Wednesday. is there any penalty if i sold it without delivery?
A very informative and well written article.
Is STBT concept is one and the same as BTST??
Hi,
I generally buy at close today & sell next day at open (BTST).
Is trading on margin allowed in this case on Zerodha or I can buy only my account balance without leverage.
someone told me that ICICIdirect allows to keep margin positions for 5 days.
Best regards
With us, you will need the complete money for keeping overnight equity positions.
Can we sell a stock and keep for delivery by selecting delivery option. Will it be not short selling?
@Madhu and Syed, STBT, that is selling in delivery without holding a stock in your demat account is not allowed. By default, if you choose the product type as CNC(delivery trades product type, while placing an order), you will be able to sell only if there is stock in your holdings.
so shorting is only for intraday??
Is it not available for CNC?
Yes shorting only for intraday.
WHY STBT IS NOT AVAILABLE IN ZERODHA.
OTHER BROKERAGE HOUSES PROVIDE THIS FACILITY.
A very useful and clearly explained article
thanku….
Similar to BTST, is there option to sell today and buy tomorrow.
can you clarify more on the depository charges. ” DP charge is what you pay when stocks are debited from your demat account (IL&FS; charges Rs. 8 + NSDL charges Rs. 5), for every stock/scrip sold at the end of day, no matter how many times you sell during the day.”
Dear MR.Nithin Kamath,
ATST not clear to me.
pl elaborate.
we risk of getting into ATST only if we trade under CNC ?
i buy equity shares on Monday. i may sell it on Monday,or Tuesday or Wednesday or on Thursday & onwards.(always under CNC) whenever i get some profit.
do i risk ATST ?
what will i do in to avoid ATST & auction penalty?
@ Tanmay, we don’t have the facility of STBT(Sell today buy tomorrow)..
DP charges is in terms of debit transaction. So for eg, if you have sold 10 shares of reliance 3 times in a day, all the 30 shares at the end of the day is debited at one time from your demat, so the DP charge is only once(Rs 13). But if you sell reliance and Tata steel, you will be charged DP charges twice..So technically you are paying Rs 13 for every scrip that you sell in a day immaterial of how many trades you have sold them in..
Don’t these dp charges reflect in contract notes? I don’t see any dp charges in my contract notes when I have done delivery from demat account
Hi Nithin
I have the same doubt as Pruthvi. why all the charges are not shown in the “Combined Equity Contract Notes”. Please reply to this.
Thank You.
Hey Prakash, DP or Depository Participant charge is levied on stock movement out of demat account which managed by depositories (NSDL or CDSL). This has no relation to contract note which captures all trades and related charges executed on the stock exchanges (NSE or BSE). Hence DP charges and also demat account maintenance charges are levied separately on the ledger and not on contract note.
@Sunyat, if you buy shares on Monday and sell from thursday, you have already received the shares and hence no risk of auction.. But if you buy on monday and you sell on tuesday or wednesday when you haven’t received the shares, that is when the risk of auction penalty goes up..
Hi Nithin,
First of all i appreciate your concerns and efforts towards traders in zerodha. In regards to “A” Group stocks, I’ve searched website like money control.com, in that only BOMBAY STOCK EXCHANGE has Groups like :A,B,T,Z,S.
My question to you is,
1)How to know A GROUP in case of “NATIONAL STOCK EXCHANGE” ?
2) Please Provide appropriate “WEB LINK” to know about ” “A” GROUP PHARMA NSE STOCKS”.
Thanks in advance.
Nagesh.
ZT TRADER.
Check this Nagesh: http://tradingqna.com/1320/stocks-classified-their-groups-group-where-list-these-groups
how to know which are “A group” stocks ?
@pinto, easiest way is to look at your financial newspaper that has list of all stocks with which group they belong to.
Dear MR.Nithin Kamath,
Thank u for the clarification.I have been following ur advice since 2011,when u started posting responses on TRADERS’JI Forum & subsequently I shifted from SK to zerodha.
this is related to my previous question.
what happens if i buy equity shares on monday & sell on the same day(that is,intraday), but under CNC (not under MIS,because while buying I am not sure that i will sell intraday.so,I always choose CNC & i never take leverage )
what do u think ? selling intraday under CNC- do I risk BTST ?
will it be better to buy & sell under MIS (just to avoid BTST)?
MIS charges will be applicable, not CNC charges
@Sunyat, there is no risk of any auction if you buy and sell the same day in either CNC or MIS product type. The risk, that too a very small one(probably 1 in 1000 times for an A group stock) arises when you buy and sell before getting delivery of the stock.
Hi Nithin,
I am an active trader and also want to open an account with zerodha.
But i am getting quite confused with CNC and MIS…
At one place it is mentioned that intraday is possible only through MIS [ where there is the concept of leverage ].
For CNC the share has to move to the demat then only selling the share is possible.
But suppose i want to do intra trade and i dn’t want leverage. I want to trade with the amount in the trading account but purely intra trading.
So according to you how the trading should be performed. I dn’t want any type of leverage.
Please help.
Thank you. Waiting for your early response.
You can use either CNC or MIS for intraday. With CNC the problem though is that you can’t short (sell first and buy back later) and you don’t get leverage. The advantage with CNC is that if you have bought something, you can hold till 3.29:59, whereas all MIS gets squared off automatically by 3.20pm.
Thanks nithin… Hoping to have a smooth journey with zerodha… 🙂
Hello!…Nithin.
In BTST, after selling the stocks shall I get instant money link Intraday? Or I have to wait for T+3 day?
Plzz Ans…
Hello!…Nithin.
In BTST, after selling a stock shall I get instant money like Intraday? Can I withdraw on same day? Or I have to wait for T+3 day?
Plzz Ans…
Ok.. To sum it up.. It is possible to go for cnc for intraday..
Buy on the same day and sell it on the same day with CNC…
Dear Sir,
As per your below screenshot it is deemed that the DP charges would not be applicable on the intraday (MIS), CNC (sell in 2 days), but as looking ledger, I felt that there are some charges has been deducted. can you please explain, or help to get it resolved?
DP Charges – Rs 8 (Zerodha) plus Rs. 5.5 (CDSL) (applicable only when you are selling your Delivery position after having held for more than two days). (Market rates are usually between Rs 12 to Rs 25)
Link from where extracts taken:
https://zerodha.com/policies-and-procedures
Will have to check what exactly these charges are. If you’re seeing a charge of 10.63 rupees, this is the payment gateway charge (9+GST).
HI,
Your F & O Calculator is not showing some time…Please look at this issue.
by f&O calculator do you mean SPAN calculator?
I’m not that much of a online reader to be honest but your
blogs really nice, keep it up! I’ll go ahead and bookmark your website to come back later on. Many thanks
Hi
This was nice informative article.
Dear zerodha
Can you give list which scripts are applicable for BTST also can consider “BSE B group” stock for BTST ??
Laxman, at Zerodha we let you do BTST on all group of stocks other than the Trade to Trade group and the penny category stocks. Yes you can trade on the BSE B group using ATST/BTST, but please understand that the auction risk on such stocks will be pretty high..
Where can I get the penny category stocks list
Hi,
If i do BTST(Buy today and sell tomorrow) do I need to pay STT Charges as Intraday or Delivery?? Please clarify with example..
Once you keep any position overnight, it will be considered as a delivery trade and hence STT would be as per that. So for eg, if you bought 100 shares of Reliance at Rs 1000( 1lk of shares) and held overnight and sold it using BTST. You have to pay STT of 0.1%(100) while buying and 0.1%(100) while selling.
Hi,
When we buy a future stock then whatever amount the span calculator shows(which is generally 15-20%) of the total purchase…So to have overnight positions we balance equal to the one shown on span calculator ?…Also, what is margin amount in case of future stocks…Please explain
Vicky don’t know if I understood your question right. To trades futures, either stock/index, you require a margin to trade. This margin can be found using [SPAN calculator](http://www.zerodha.com/z-connect/blog/view/span-calculator) or using SPAN file, [check this blog for more.](http://www.zerodha.com/z-connect/blog/view/zerodha-margin-policies)The blog on margin policy should have answer to your query, do check it out and if there is anything else, do post it again.
Cheers!!
Hi I m trading via NSE Mobile Software. Can I use BTST facility through my Mobas my T1 Holdings not showing in Net Position ?
Yes, Sourav. You can use the BTST facility through your mobile. It is quite easy to do so and remember that you don’t need to see your holdings to exit them. You just need to place an order to exit your position by using the market watch and then placing a trade from there. You just need to remember what stocks you hold before you sell them… You can also view them in your Holdings in the T1 quantity on the mobile platform. BTST trading has it’s own share of risks and you should be careful while trading.
Hi,
Why One cannot place the oders before the market opens? I am able to place the orders well in advance in some other service providers but not in Zerodha. Please share your advice and navigation path if we still can do. I need this for both Cash and F&O segment.
Thanks,
Ananth
Hi Ananth,
You can place “After Market Orders” from 6:30 pm to 9:15 am on all the exchange segments..You’ ll get more info on how to place these orders on this blog:
http://www.zerodha.com/z-connect/blog/view/pre-marketpost-marketafter-market-orders
1. I want to know how auto square off for MIC mode trading happens.If ABC company is trading @100 at 3.20 pm then after that time zerodha executes auto square off, so if there are no buyers at rs 100 and there are buyers at rs 95 then will the shares be sold @95?
2. why bracket orders are not allowed at Zerodha? how some brokerage farms are allowing it if algo is not allowed. you have promised to look into it (3 month back).
Hi Prasad,
1) Auto Square off for all Equity MIS products happens at 3:20 pm and would be done by the systems at the available rates. So if the buyer is available at 95, the order would go through at 95. It is therefore best to square off illiquid equity MIS trades manually before the Auto Square off happens.
2) We are seeking necessary approvals from the regulators to provide you with this feature.. We will update you soon on the same.
Folks, This blog is very informative. I have one question on futures trading since I have never done this so far.
Let’s say I have margin available for a company A Futures with having N lot size. Assuming that I place a target order at price x and stop loss order at price p!
I assume for intraday I should place mis order for this. Am I correct? Now assume I want to move this futures order to next few days/nights , what are the actions I should take? I mean should I convert this normal order or what options are available to me in this case? What are the risks in this case for me in terms of cost (STT etc…)
Thanks in Advance,
Purushotham
Purushu,
Firstly as far as futures is concerned, STT and all other charges don’t change if it is an intraday or overnight trade, unlike while trading equity where STT shoots up almost 10 times.
Secondly, use MIS order only if you want the extra leverage, otherwise always use NRML orders, you will have the flexibility on when you want to square off without worrying about converting positions and etc. For eg, if you are trading reliance futures, lotsize 250 and assuming price at 800, you will need around 32000 to trade using NRML and 40% of 32k which is around 13k if you use MIS. The catch being all MIS orders get squared off at 3.20pm everyday.
How you want to play it is your call, if you want the extra leverage use MIS, but make sure you convert positions to NRML by having sufficient margin before 3.20pm.
Cheers,
Perfect! Thank you for the prompt reply.
Regards,
Purushu
hi
please explain Dp charges..
if i sell ten infy shares +10 sbi in a day from my demat. how DP Charges will be applicable??
Sorry had missed your query,
If you sell 10 shares of Infy + 10 SBI, that is basically 2 debit transaction from your demat and hence Rs 13 + Rs 13 = Rs 26
Cheers,
Hi Nithin,
Thanks for such detailed article. It clarifies a lot about BTST thing. I have queries however related to charges , can you please post answer for below points :-
1)
a. I purchase 100 shares of say BHEL under CNC option on Monday. So what would be the brokerage /other charges applied to me if i sell them on Monday itself ?
b. Charges if i sell them on next day i.e tuesday
c. Charges if i sell them after taking delivery i.e post wednesday
2) In continuation to above case, assume i hv bought 100 shares of BHEL on monday using CNC option, and i sell them on next day i.e tuesday, and consider i purchase them again on wednesday. So will i book profit for such situation for the following scenario — say i purchased 100 shares @80rs (i.e 100*80=8000 ) on monday.
Now i have sold them all @90rs (i.e 100*90=9000 ) on tuesday.
further suppose on wednesday, the share price drops further to 78. So if i buy the same share on wednesday using CNC, what rate i would be charged 78 or 90. I think it should be buy with price of the day i.e 78, but still if you could please confirm it for this particular case.
It would be of great help if you could clarify the above queries.
Many Thanks for your support on this.
Deepak
Suppose i purchased share on monday and i sold them on wed(T+2). DP charges will be applicable?
Yes Lokesh,
We will let you sell 800 shares tomorrow if you bought 1000 shares today in delivery and let you take delivery of the remaining 200.
Yes all delivery/BTST trades are all executed using the product type CNC
loke4300Jun 15 2013, 11:17 pm
f/u question:
how did you come up with my name? just using my id???
not that i mind…..just curious
Loke,
Just realized that, I guess it was instinctive. 🙂
I have a close friend whom we call Loke and whose real name is Lokesh. 🙂
Cheers,
pl let me know about “PRODUCT CODE” details ,i.e differance between MIS Order,NRML order, Co order details.
tks
Check this blog for MIS/NRML/CNC: http://www.zerodha.com/z-connect/blog/view/orders-place-modify-cancel-view
For cover orders check this out: http://www.zerodha.com/z-connect/blog/view/cover-orders-for-higher-leverage
Could you please tell me, Is it possible in zerodha to automatically one can set to sell the shares at some price(if it reaches) and the same way while buying.
Yes Mani,
You can place limit buy or sell orders to choose the price at which you want to buy or sell. To buy you will need money and to sell you will need shares in your demat account. http://www.zerodha.com/z-connect/blog/view/orders-place-modify-cancel-view
You can also place after market orders in the evening, if you don’t have access to place orders during the market hours. http://www.zerodha.com/z-connect/blog/view/pre-marketpost-marketafter-market-orders
But all orders you place get cancelled at the end of the day, so you will have to place it once again after that.
Question on BTST..
As per explanation given above, does that mean that if I sell a share on T+2 , I am guaranteed safe , as even if I get short delivery on stock that I bought but that will be credited to my Demat A/c on T+3, so what I sell on T+2 will always be there on T+4. Am I correct or is there any more risk/angle to this , that I may be missing ?
Thanks..
kaps
You are correct Kaps
I believe there is still risk if exchange settles you in cash rather than stock on T+3
Niftybees?
Can NiftyBees(and other ETF’s) be sold on T+1 OR T+2 . ie can it be sold before I get delivery of it ?
Thanks
You can do a BTST transaction for ETF’s..However there is still a risk involved,however little..It’s always best to take delivery of a stock and then sell to avoid getting charged auction penalty.
But Niftybees can be sold short, so risk in selling without delivery should not be there in NiftyBees. Isn’t it ?
I typed it wrong.
NiftyBees cannot be sold short, so isk is not there in it if sold without taking delivery. What do u say?
Once a stock has been sold by a client, his broker needs to initiate a PoA (Power of Attorney) to transfer the shares from the client’s account to meet the Exchange obligation…If you are the counter party to this contract (buyer) and in case the broker doesn’t initiate the transfer, then the shares you purchased would be short delivered to you and your subsequent sale transaction the next day (BTST) would result in a short delivery..That’s why I said “little risk” 🙂
Thanks for the response.
But still i want to ask. Broker locks the Stock(ETF) when they are sold by a client. And client is guaranteed to have stocks in his Demat A/c incase of NiftyBees.Then under what scenario is it possible that a broker fails to initiate transfer of a stock ie NiftyBees?
Regards
Yes Kaps, In an ideal world no stock would go to auction..There are various reasons..Clerical errors on part of the broker, Stock being transferred to the wrong settlement number, wrong settlement type can be a few reasons why the delivery obligation might not be met..
Thanks for clarifying..
Hi,
I have read this Post but it is quit confusing,
What I am thinking is,
For example, I Buy 100 Shares @ Rs.100 and I believes that price of this scrip will go up tomorrow. now nest day price of that Share goes up @ Rs.104
So I put the Sell order for that 100 Shares @ Rs.104 using BSTS, But I there is no buyers, Now in this case exchange Sell this Shares using auction.
So in above case What is the maximum risk for me, I mean maximum money I can lose in above case is?
Thanks,
Sharekumar, you must read the article again. It’s fairly simple to understand. You have to note that when we talk about the risks of BTST trades, we talk about it in relation to the settlement process which is T + 2 for equities. T + 2 means trade day plus 2 days. We do not perceive many risks in the real-time market. If there’s decent amount of liquidity in the markets it’ll be easy to exit the stock, but if there’s a failure to delivery by the counter party after trading hours, it will be risky for BTST trades. I hope this information is clear now.
SIR, WHEN ZERODHA IS GIVING THE FACILITY TO SELL T1 AND T2 HOLDINGS , THEN WHY DO WE HAVE TO FACE THE RISK OF PANALTY.
Rehman,
This risk as mentioned in the blog exists on BTST or T1 trades no matter which brokerage in India you trade with. The risk is because as explained in the blog. If you don’t want to risk this penalty it is best to trade only once you have gotten delivery.
I have 2 queries:
1. One 30th, I purchased some shares of BPCL but I can’t see those under either of “Surveillance – T1 Holdings” or “Holdings”. Where i can see those in my NEST Trader?
2. For my DP statement for the first 15 days of August i.e. from 01/08 to 15/08/2013, I can see a note that I “have outstanding DP service Charges of Rs 7.22 as on 31/07/2013 to be paid to us (Receipt considered till 01/08/2013 )”.
I haven’t made any transaction before the purchase of BPCL which was the first ever trade that I performed using my Zerodha and IL&FS DP account.
Then why did this service charge?
Please provide your inputs.
1. If you have bought the shares under the product type CNC(for delivery), it should show in T1 or holdings(ideally holdings after T+1 day). If it is not showing there might have been a short delivery because of which you might not have seen it, if there is a short delivery, the shares are credited 1 day late to your demat account.
2. Can you email this DP statement to [email protected], we will let you know why the charges could be for.
Cheers,
I want to correct above post. Suppose I purchased 20 shares of TechM and want to sell shares tomorrow because I expect price of shares and Index to go up due to announcement about tapering of purchase of bonds from Mr.Ben of US treasury. I am not holding shares in Demat a/c of IL&FS but hold shares in another Demat a/c.Then what happens?
Regards,
Vijay Bhide
Viju,
You will not be able to sell shares as CNC without holding it in demat account opened through us.
viju_1105 Sep 20 2013, 10:17 pm
I am aware of this. I am trying imagine a scenario when you have a demat a/c with IL&FS opened through Zerodha and purchased the shares as CNC through Zerodha and want to sell the shares tomorrow but those particular shares are not present in IL&FS a/c but different a/c and the penalty situation arises when the counter party fails to transfer the shares.
Regards,
Vijay Bhide
[ Click to thank ]Reply
Viju,
Our systems in made such a way that you will never be able to sell as CNC unless you have stocks in the demat account with us. When you try to sell it will give an error saying check your holdings.
You can try this on the platform to see the rejection error,
cheers,
Nithin, I think Viju is asking a question for a situation where he buys under BTST in Zerodha, then sells it under BTST, but there is a short-delivery in Zerodha/ IL&FS demat account, and the shares are available with him in another demat account.
Viju, in that case, I think that you should be able to transfer the shares to your Zerodha/ IL&FS demat account and avoid the auction. However, your timing will need to be perfect, and the Zerodha demat account needs to be credited before the demat debit entry is made.
hi…what if…i do BTST on T+2 morning… first off is it valid???…..if yes…How will it affect me then… in terms of demat charges and short selling etc…..thanks..:)
babloo,
Yes you can sell on T+2, it is technically still BTST since you would not have gotten delivery of the stock. In terms of risk of short delivery it drops to almost 0 because even if the guy you bought from on T day defaults to deliver the stock, you will get it in auction and have it in your demat on T+3 ready to deliver for the shares you sold on T+2. Hopefully didn’t confuse you on this, smart question though. 🙂
IF you sell it on T+1 there won’t be any DP charges, but if you sell on T+2 DP charges will apply.
I think there is still a minor risk that there are no shares available in the auction. In that case, there will be a short-delivery and some monetary compensation may be provided by the stock exchange.
But the monetary compensation may or may not be enough to cover the loss due to auction of the short-delivery in shares sold by you. I had faced this situation once, so speaking from experience.
hello nitin, what if i buy a share today and sell it tomorrow looking at a higher price, will i get the profit if the shares arent auctioned?
Mayank,
When you buy and sell at a higher price, be it intraday or BTST or after delivery, you will 100% get the profits to you trading account. The risk is that when you do a BTST trade, you might not get delivery of a stock and hence you end up defaulting on your sale.
It is very similar to if you write a cheque on your bank account expecting another cheque that you had deposited to your account. If the cheque you deposited bounces, the cheque you gave also bounces.
Hope this clarifies,
Need a clarification. If I buy stocks under BTST on Monday for 40K and sell them on Tuesday for 42K. The money for sure will get debited on Monday. When will the credit happen to my trading account?
Anitha,
What you sell on Tuesday, the credit would come to you on T+2 days, which is thursday, that is if you want to withdraw the funds to your bank account. If you intend to take fresh positions, you can do it on tuesday itself.
1)can i take exposure for this BTST? (like intraday it will give 1:4)
2)could i take STBT ?
1. BTST has no exposure, we provide exposure only for intraday
2. We don’t allow STBT.
how to apply trigger price and what is SL-L & SL-M
Check out this article to learn about the different types of orders available with us.
Honestly, this is the best article I read on BTST. As a new trader, It created confusion always. This is such a simple and detailed explanation. Hats off for taking this much effort. Now looking to open an account with Zerodha
i dont have reliance shares in my DP..but i want to sell reliance shares till tomorrow or 2 days ,how could it be posible….
Pinak,
If you don’t have shares in your demat, you cannot short it for overnight. If you want to do this, as your view is that price of reliance is going down, the best way to is through reliance futures and options.
@Nithin, It is great to see you get time to reply 🙂 for queries here, impressed totally!!
BTW, is there a list or link anywhere for the stocks for BTST? I understand you mentioned all stocks, except T2T and penny stocks, but a list would be good (Also I understand this list would be dynamic from time to time as exchanges move the stocks in and out of T2T segment).
I think one more thing that one could do for BSE B group is not sell entire acquired stocks previous day under BTST and sell only 50% or max 70% to bring the risk of going under auction. Also, if these shares are bought in 2-3 chunks rather than one trade and there are multiple fill (even in the same trade) in that case one can go with 90% or 100% BTST for BSE B group also, as the risk of going all shares for auction will come down. But, yeah there is a risk still, but a lesser one!!
My 2 cents.
Cheers!
Hey Cool,
Thanks for the words,
There is no list of stocks that we have made for BTST as of now, since most stocks are part of it. But I guess it makes sense to have all stocks which are presently in T2T, so this way people will know what is not allowed for BTST. Will try to have this soon.
Cheers,
hello Nitin sir,
Thanks for the write up. excellent for new comers.
Query :- I do a lot of BTST through my current broker . I was planning to open an account with zeroadha. By reading the article, I came to the conclusion that due to the MIS and CNC featre that the software has,it won’t be possible for me to do BTST in stocks in cash segment. We do a lot of dividend stripping which can’t be done in futures.
An example to illustrate my point
Through my current broker
1. at 3:28 PM on 4th march 2014 i buy 1000 shares of relcap 1000 shares of relcap 500 shares of reliance
2. at opening of 5th march i sell these three around 9:20 AM
3. The T+ 2 facility and pool DP id on both sides takes care of the delivery and till now I have not faced any issues
Through ZERODHA
1. at 3:28 PM on 4th march 2014 i buy 1000 shares of relcap 1000 shares of relcap 500 shares of reliance
2. at opening of 5th march i sell these three around 9:20 AM
3. at 3:20 since i do not have shares in my demat account yet the stocks are squared up
Is that correct.
This would be the final query before i open an account with u !!!
Saloni,
This blog only tells about the possible risk that exists by doing BTST, that risk is very very tiny when trading liquid stocks like Reliance or Reliance cap.
Similar to your current broker, you can buy on 4th at 3.28 am and sell on 5th morning at 9.20am, on T+2 everything is automatically taken care of. Also you can use the proceeds from the sale on 5th morning to buy another stock.
wonderful sir …. the account opening papers are on the way !!!
Hi Nithin,
Couple of QQ around BTST
1) When T+1 is a settlement holiday, will our NEST terminal/web app by default block us from selling as CNC?
example : I have bought Hindalco on 28th March and 31st March being a settlement holiday, will my CNC trades be by default blocked as preventive measure?
2) I have a DP with IIFL, they send me these settlement dates emails. I do not receive any from our ILFS people nor from our Zerodha Team if I am not mistaken
Suggestion: Can our Zerodha Team warn us about the same via emails?
3) For my personal understanding can you please help me, if i understood it correctly: i.e. if T+1 is a settlement holiday we cannot sell, like 8th April is again a holiday, so shares bought on 7th cannot be sold.
Traders: Please visit this link for settlement holidays>> http://www.nseindia.com/content/circulars/CMPT25363.pdf
Thanks in Advance as always
Mahesh
Hi Nithin,
Couple of QQ around BTST
1) When T+1 is a settlement holiday, will our NEST terminal/web app by default block us from selling as CNC on T+1?
example : I have bought Hindalco on 28th March and 31st March being a settlement holiday, will my CNC trades be by default blocked as preventive measure if i try to sell on 31st March?
2) I have a DP with IIFL, they send me these settlement dates emails. I do not receive any from our ILFS people nor from our Zerodha Team if I am not mistaken
Suggestion: Can our Zerodha Team warn us about the same via emails?
3) For my personal understanding can you please help me, if i understood it correctly: i.e. if T+1 is a settlement holiday we cannot sell, like 8th April is again a holiday, so shares bought on 7th cannot be sold on 8th April.
Traders: Please visit this link for settlement holidays>> http://www.nseindia.com/content/circulars/CMPT25363.pdf
Thanks in Advance as always
Mahesh
THE technology is so advanced but why the dp is reqired 2days to credit shares ?
dp charges applied is perday or permonth?in 13rs (if i sale 20days in amonth same stock what would be dp charges is it rs 13 or rs260?)
mohan
Hopefully the exchanges in the near future will go from T+2 to T+1 for Demat settlement, there is work happening on this presently.
DP charges is per debit instruction, so if you have sold 100 shares of Infy today (irrespective of how many trades you sold it in), you will be charged Rs 13 when these shares are debited from your demat.
In that case BTST traders will have to pay extra DP charges. which can be good percentage of overall charges if one trade in multiple stocks.
What will be the penalty Amount.
Nelvin,
There is no set rule for how much the auction penalty would be, will depend on the liquidity of the stock.If there are many people tendering in the auction, the penalty would be lesser, otherwise it could be quite a bit.
Cheers,
Hello Sir, please give one example for this auction penalty on BTST trade.
1. What is maximum amount to be charged. suppose stock price is 100 rs and Selling price is 110 rs.
2. Please share one image on this which one is happened previously.
Thank you for Response in advance.
Hi,
there is a risk of aution penalty in btst, we can do normal trade only buy in cnc n sell in cnc…….. is there any margin benifit for this. r any other merits of btst
Hi,
I just want to know which are the stock which can i buy today and sell tomorrow. I mean to say not all stock can be sold at T+1 days. For e.g. i bought tata power shares under cnc mode and i was able to sell tomorrow but not in the case of reliance power or sslt.
In icici there is a tab called ‘Stock list’ in which u can refer which stock u can buy today and can sell tomo BTST.
so if u add some tab or something to refer the stock which can be sold tomorrow it would be helpful to us.
Please reply to this query.
Regards,
Ankit shah.
Ankit,
We let you trade BTST on all stocks, but do know that there is an auction risk that exists in case you do this with illiquid stocks. Check this post for more.
sir, if i sell ( say 50 share of Reliance ) from my demat a/c using CNC option on monday
and by the evening i again BUY 50 reliance on same day using CNC option
my question is
1 can I do this , if there is no fund in trading a/c ?
2nd question is if i can do this then will my shares debited from demate and then credited after T+2 days OR
it will be a intra day Trade?
another question is can i sell my share from my DEMAT by market order and then after some time on same day can i convert this order from admin position in MIS order type
1. Yes you can.
2. It will be considered as an intraday trade itself.
3. Yes you can convert CNC to MIS from Admin positions.
dear zerodha team
can i convert intraday to delivery .i.e, MIS TO CNC if i can by what time IT SHOULD BE DONE
Yes, it can be but before 3.20pm
what should be best way to trade in BTST, should I look into the volume or daily turnover.
Volume and daily turnover both mean the same thing Shiva, if your query is generic on markets, ask it here: tradingqna.com
How Do I make sure that when I put sell order under CNC they are sold from T1 holdings under BTST,and
not from DEMAT?
Sahana, if you sell as CNC you don’t get an option to choose from where the shares will be debited. But as a practice we at Zerodha make sure that if you have sold as BTST, the shares in your demat is not debited, so you don’t have to do anything, we as a rule debit from demat only if the quantity you sold in BTST was more than what you had bought the day before.
Hi Nithin,
If I buy as CNC, do I need to have the required cash in my account at that point of time or can I bring it later within T+2 days, since the cash gets debited after 2 days (as per my understanding)
Chandan
You will need 100% of money upfront Chandan if you are buying with product type as CNC. Money doesn’t get debited after 2 days, exchanges debit the money the next day morning but is credited to the seller on T+2 days.
Hi Nithin,
Happy to see your descriptive blog on BTST. You mentioned that we need 100% money for CNC. Does it mean that you don’t provide margin on our holding as other brokers do provide where in we can deposit money tillT+2 days. Why this is so? Pl. revert on my email as well.
Whenever extending leverage to a client, a broker is taking a risk on his part. With the razor thin margins that we operate on, this did not make sense.
How to sell shares from T1 Holdings ?
Use the sell order window and mention product type as CNC and sell, it will get sold from T1
I did the same but since I had securities in the DEMAT account also it got sold from Demat. How to handle this?
Can you send this as an email with your client id to [email protected] and [email protected], we will have this checked.
[…] Zerodha, Your stocks on T+1 day will show in T1 holdings, Click here to read the risks of selling stocks before taking delivery from your T1 […]
Hi Nithin,
If I link my demat account in RKglobal to my account in Zerodha, Will I be able to sell my stocks after buying in zerodha as CNC on same day or BTST.
If I can only Buy using zerodha and have to sell using RKglobal then will my stocks display in their account or it will be automatically managed by NSE.
Vijay,
Yes, you can buy and sell as CNC on the same day, but you will not be able to trade BTST or delivery without a demat account that is opened with us.
When you buy shares at Zerodha, it will go to your RKG demat and will display there itself.
Hi Team,
I have Rs 50K in my account…. I buy stocks worth 50K on monday and sell it on tuesday……
Question 1: I understand that i can place a withdrawal of Rs 50K from my account only on thursday evening. Is this correct ?
Question 2: Even though iam not able to withdraw the amount, iam able to trade with it before thursday. If i do intraday trading on wednesday (buy and sell same day) and again on thursday ( buy and sell same day) with the money, Will i still be able to withdraw the 50K on thursday evening.? ( since iam doing only intraday and not delivery based on wednesday and thursday).
Please clarify.
Thanks
Danny
1. Yes.
2. Yes.
🙂
Than you
Hi Nithin,
Hope u r doing good.
Just a qq if there is any scope to include the margins of 3 to 8 times on BTST.
I know zerodha provides 15 to 20 times on BO and CO but on BTST there is however no margin provided
If this is in the pipeline it could be an added advantage to you and to us. If considered it could be more business and more customers for you as brokers like Kotak and the likes to provide this and are heavily propagating the same.
Definitely this would be beneficial to investors like us who can gauge the short term market better and trade more
Hope something fruitful comes up on BTST
Regards
Sagar G Tambre
Sagar, giving leverage on overnight positions increases the risk considerably, and it doesn’t make business sense to take it without earning anything extra, (a Kotak will earn 10 times the intraday, if kept overnight and hence do things to encourage that).
Cheers,
Dear zerodha,
hi sir, this is nagesh here. thank you soo much for your reply and i appreciate your concern towards traders.
bye sir
Thanks for your prompt response Nithin:)
Definitely agree to your point that it increases the risk considering leverage is given on all EQ securities but I would rather think it will be of less risk if we have leverage on all your high liquid stocks ie.150+ odd stocks from the intraday trade stock list for BTST
And a definite more trading as well for zerodha
Dear Nithin,
i am having following question for Product type CNC
Suppose I am having 10 nos of TCS in my Demat A/c
Presently at BSE it is trading at 2625 & at NSE it is trading at 2645
1) If i sell 10 Nos of TCS through CNC at NSE @ 2645
2) After selling same qty of shares TCS are bought at BSE @2625
in this case i will be having profit of 20×10=200 Rs without damaging my present holdings
I would like to undesrstand the following
1) In above case whether there will be two times IN & OUT of TCS shares in my Demat or there will not be any Transation happening in my Demat A/c
2) What will be Securities transaction tax in above case whether it will be treated as intraday or delivery?
3) If i perform first step ( Sell TCS @ NSE) & if i am not having any Money my Trading A/c whether can i buy shares at BSE through P type CNC
4) What will be Net profit in above case
Another Query is if i bought TCS @ 2625 through BSE in MIS & sell it @ 2645 through NSE in MIS is it alloweded ? whether loop is completed in this transaction or if i do it there will be penalty ? i think it is arbritdige? pl clear
Regards,
Banti
1. There won’t be any transaction on your demat, this will be considered as an intraday trade.
2. STT as intraday trade as well.
3. At Zerodha you can, but not all brokers allow you to do this.
4. Rs 200 – all charges, you can check our brokerage calculator.
Yes you can buy on BSE and sell on NSE, but this won’t be an arbitrage it would just be a naked trade. I just wrote this somewhere:
Assume Reliance on NSE 1000 and BSE 1010. You can buy 10 shares for intraday on NSE and same time sell 10 shares at 1010 on BSE. The difference is Rs 10. Assuming by 3.30pm this different didn’t reduce, in this case you have to exit both positions, and your trade could be a loss making one as well.
Sir I have bought shares of deep industries and atlas cycles on Wednesday i.e today.
Can I sell them tomorrow.i mean are these stocks liquid so that I don’t need to face any penalty.
Pls do help me sir.
You can sell the next day, but you need to understand that there is always a risk of short delivery when selling before receiving stocks in your demat.
Could you kindly explain how DP charges are calculated in the following cases?
Case 1
I sell 100 shares of INFY and 100 shares of DLF today. My DP should be Rs.13 * 2 = 26
Case 2
I sell 1 share of INFY today, 1 share of DLF tomorrow, 99 shares of INFY and 99 shares of DLF day after tomorrow. My DP should be Rs.13 *4 = 52
Is DP a flat charge charged at Rs.13 per scrip per day irrespective of the volume (i.e) charge per debit transaction to the Demat Account?
Also, what is the present DP charges, Rs.13 or Rs.14 and where I could I get the details of shares on which DP charges are charged in the backoffice (I could see the daywise charges but couldn’t map it directly to the shares).
1. Yes
2. Yes
Login to q.zerodha.com and you can see the DP charges both on your ledger and on your P&L statements. Dp charge is Rs 12.5 + Service tax, hence comes to around Rs 14.
I have used HDFC Sec and have sold many shares before taking delivery. Means bought on T day, sold the same on T+1, T+2, T+3. But I have never faced the problem of auction. I even don’t know about this concept that you explained. I also heard some concept like shares will flow into broker pool account and they will manage to allocate shares to the needy accordingly since many people will be trading on their platform. has this happened to anyone? or is it a problem when we do trade with broker who has less clients?
The problem with BTST typically can happen when you trade illiquid stocks. You are most likely to never face this issue if you are trading the top 200 to 300 stocks on NSE. It also doesn’t really have to do with brokers who have less or more clients.
Sir, Actually I am commodity trader and want to trade in equity market.
so please what is exactly meaning of call and put in future and option??
No one tell me.
i.e. Buy JPASSOCIAT 30 CALL @1.50 Target 3 SL below 0.75.
Yogesh, can you ask this question on : http://tradingqna.com/
I am a BTST trader.
http://zerodha.com/z-connect/queries/stock-and-fo-queries/btstatst-buyacquire-today-sell-tomorrow
based on the above link zerodha has confirmed at one point that client will be able to do BTST (but today sell tomorrow as it is allowed) & immediately in next statement at last it is said that onus depends on clients w.r.t. auction as it is assumed to be very high penalty on traders so one can do the BTST trading or not is my question & assuming if i am trading only NIFTY based highly liquid stocks but still then what abt auction ?
So before goin ahead i wanted to clear the things between this two bias statements as it is a bit confusing. Kindly clarify
Regards,
Shreyas Kurade
Shreyas,
Yes you can do BTST, but there is always a risk of auction penalty when you sell without owning the stock in your DP. It typically doesn’t happen with A group stocks, but lot of auctions when trading the B group and below stocks.
It is like the caution you see say before getting on a roller coaster :).
Cheers,
Dear Nithin,
My doubts regards to ” A GROUP Stocks / SAFE BTST TRADING”. Here are few:-
1) Please Clarifty can we do “BTST” on these NSE Stocks:- CNX PHARMA, CNX 500, CNX NIFTY JR, CNX NIFTY, NIFTY MIDCAP 50, CNX MIDCAP, CNX 100,
Yeah they are safe.
Hi,
I wish to trade BTST on NIFTY 50 or NIFTY MIDCAP stocks. what are the chances of short delivery in these 100 stocks. Also is there a limit on the number of shares i can buy as BTST.
Chances are quite less and no there is no limit.
Dear Mr. Nithin Kamath,
I am very happy trading in zerodha and read article in E.T. about Zerodha and efforts of yours. Sir i have clarified almost all doubts regards to BTST. I have one last doubt , hope you will clarify,
“If I BUY and SELL on the same Trading Day chosing Product Type as ‘CNC’, It has been treated like Intraday”.
Sir, My doubt is : If i buy and sell stock on ” Same Day ” chosing product type as ‘CNC’ and trading in irrespective group of stocks say like “A” Group or “B” Group Or Z Group Or T Group.etc.. , Will it be:
1) LIKE AN INTRADAY ?
2)NO AUCTION PENALTY SCENARIO.
I Want answer and if you clarify my last doubt then “I’ve Complete Understanding on BTST”. No More Doubts and i will be very proud to be customer of zerodha..
With Warm Regards,
Nagesh
If you buy and sell during intraday, either using MIS or BO or CNC, all are considered as intraday trades itself. So there won’t be risk of auction penalty as all your positions are squared of.
But stocks which are in T2T, no intraday trading is allowed. So such stocks, you are forced to take delivery before you can sell them.
Hi Nitin,
Thanks for sharing the knowledge. I have 2 question for you.
1. I bought some shares on 16th Oct and I can see that that the settlement date for the same is 20th Oct. Given that pay-out time is around 1:30 PM, I should see the shares in my demat account around that time. But I don’t see shares in my ilfs demat account even at 11 PM. I dont have any problem even if I get it tomorrow. But just wanted to understand how this works. Is it the redistribution from pool account that is done overnight?
2. Lets say I have some amount of share of X company in my demat account on T day, which I had bought 6 months back. I bought some more X share on T day. Now when I am selling on T+1, how can I make sure that demat transaction happens because reading the whole thread it seems Zerodha first checks in T+1 and then only it goes to demat holding. Asking this question because I want to make sure that demat transaction happens so that I can book some short term loss.
Thanks,
Sweta
1. Redistribution from the pool is done on T+2 evening, so you should see it by late in the night in your demat. If the counterparty has defaulted, you will get the shares on T+3 evening after the close of auction market.
2. Hmm.. As a process to save on the DP charge we deliver the shares that are yet to hit your demat. Yours would be a special case, so if you can send a request to [email protected] whenever you get into this kind of transaction where you want to show a short term loss, we can probably do it for you.
hi i wish to know that if i buy and sell a stock on the same day (intraday) as CNC product type. Then do i face the risk of short delivery.
thx
No, no risk at all.
Hi
I wanted to do Trading in BTST trading through mobile trading application
my Ques are as below
1) If I Bought the shares in MIS in Morning & I would like to convert it to CNC How I can do through mobile trading application?
2) If I have converted the stock to CNC on trading day & on Next day I would like to sell this through Mobile application how I can do this?
3) If I have Bought the stock today & sell it tomorrow for Both the transaction what will be STT whether it will be as per Intra day rule or as per delivery rule
4) Trading ATST/BTST on Liquid stocks of A group companies will never Get Auction Penalty or still there is chance of getting penalty? I mean to say if I am trading in A Grp companies I am 100% sure for non penalty?
5) In Mobile trading facility there is One option of Set Alert for scrip through sms or mail
I tick both the options & kept alert for stock e.g TCS LTP>=2470 i should get SMS or Email but I got alert through mail only not through SMS I called customer care ,he told this SMS alert facility is provided but not working is it true? How can you overcome this
For Mobile Application if you could elaborate with Snaps it will be better
Regards,
Banti
1. To convert your positions on the mobile you need to use the “Partial Position Conversion” option available in the Positions widget on the mobile app. You can read more about it on our blog for the mobile app.
2. All your positions are synced with all your devices seamlessly. This means that you can buy on day 1 as CNC and and sell on the mobile the next day by simply placing an order for the quantity you own as CNC. Your T1 Holdings will show up in your Holdings widget and you can also use the square off button. Note that the scrip can be tapped on to open the next page on which you can see the exact amount of T1 holdings.
3. STT will be charged as per the rules and regulations set by SEBI. Since it is not an intraday trade, you will have to pay the whole STT for delivery based trades. You won’t have to pay DP charges for BTST though.
4. Usually, you should never have a penalty trading A group stocks, but the stock market is a place full of surprises… so it’s best to be safe or aware of the risks you’re taking.
5. We provide alerts for stock prices only on email, not by SMS as most service provides charge for this. Since we don’t intend to charge our clients for getting SMS alerts, we’ve decided to not offer this facility.
Hallo Nithin
We Have CNC Bought Monday on Scrip Tuesday View on T1 Can choose the option CNC and sell The T1 Same Scrip We Are Getting Any NSDL Charge OR NOT ? This BTST ORDER
There is no DP charge for BTST trades.
And if I bought on Monday (T day ) and Sell on Wednesday (T+2) , as shares hit demat on evening and i sold at afternoon ,will DP charges in this case applicable?
Yes, on T+2 stocks will be credited and subsequently debited, so DP charges will be charged.
When I try to sell my stocks in T1 holdings using CNC, order gets rejected saying “order with invalid attributes rejected by the system”
What am I doing wrong?
Can you send an email to [email protected]
HI , i wisht to trade BTST only in NIFTY 50 stocks. I will be trading a volume of 1000 shares per trade.
Now am i taking a huge risk of shrt delivery on such high volume ? . And secondly if some of my shares do go short then when exactly do i come to know of such a thing. eg i bought 1000 shares of xyz as CNC on Monday (T) and sold as CNC on Tuesday (T+1) entire 1000 . Now when will i find out if my transaction is short or it has been sold safely.
and lastly when is my money available for taking the next trade . Can i take another trade on Tuesday itself or shall i wait till T+2 or T+3 in case of shot delivery.
thx so much
Risk of short delivery is minimal in Nifty 50 stocks. If you are worried about it, you could just trade using futures.
You get to know by T+2 day afternoon. So if you bought on Monday, by wednesday afternoon.
In case of short delivery, the money from your sale proceeds gets blocked until the auction happens. Which is on the T+3 day, so until thursday evening.
Hello Nitin,
Hope you are doing well. I have a small doubt regarding BTST. Suppose I buy shares worth 10000 today and sold it tomorrow for 11000. Will that money be credited in my account in the same day??? Hope you will look into this and clear this for me. Anyway just want to tell you that all my friends have switched to zerodha and are very much happy being a zerodha customer.
Thanks Aby,
All equity settlements happen on a T+2 day basis in India. So if you sell on Monday, you can withdraw the money to your bank account on Wednesday (T+2 day). But you can until then use this money to trade something else.
Cheers,
how to buy equity???????
Intraday trading also has this risk,right?
Only if you short for intraday and the stock hits upper circuit. But if you are buying and selling, there is no risk of short delivery in case of intraday.
If i use CNC option to buy a stock on BSE.
For example I brought 800 shares – 600 Rs each using the CNC option, i.e no leverage.
However during the day I see the stock price rise to 605 Rs and i decide to sell all 800 shares.
Will it considered as an completely intraday trade?
I mean my Total taxes and charges will be 198 rupees using the “intraday brokerage calculator” or will the Total taxes and charges be 1041 rupees using the “delivery brokerage calculator”?
Yes it will be considered as an intraday trade, so yeah 198 in charges.
HI, Nitin bhai i ve a doubt related stcks i ve shres SBI AND ONGC when i go to sell these shares shows (screen shot attached) please help sir ji,,,,,,,,,,,,,,,,,,
Sunny, this doesn’t look like our platform. Can you send a screenshot from our platform?
Yes it’s not yours platform this is Screen Shot of SBICAP
Sunny, don’t know how this work with SBI cap.
can u please elaborate about TYPES………
This again is not our platform.
Hi Nithin,
I have got one confusion relating to CNC product.
On 9th Feb,2015, bought 508 qty of share at Rs.16.57 under CNC (got delivery of the same).
On 13th Feb,2015 ,at 11 A.M, sold entire 508 qty at Rs. 16.80. under CNC (gaining profit) .
Again, on 13th Feb,2015 at 1 P.M , bought 510 qty shares of the same stock at Rs. 17.10 under MIS product, later converted to CNC for geting delivery of the same.
Now, my understanding is ,
1. I should have gained profit from the first transaction done on 13th Feb, 2015. ( as it is a squared off position of 508 shares which I was already holding)
2. As a consequence of second transaction, I should have been ended up taking delivery of 510 shares.
But, as per contract note received, calculation is done in this way,
(510 * 17.10) – (508*16.80) = -186.60 (loss)
I didn’t understand why the second transaction has been considered as squared off position of the first transaction.
May be I am missing something Or my understanding is not correct.
Please clarify.
Thanks,
Lahon,
Your understanding is correct. Contract notes show trades done only for the day. Check out your P&L statement on https://q.zerodha.com/.
Hi Nithin,
Recently, i had a similar incident of short on BTST,
1. On 19-Feb, i bought 500 shares @ 442.36 of jetairways for intraday trading but unfortunately the mkt was down so advisor advised to sell next day.
2. On 20-Feb, i sold the same of jetairways of 500 shares @ 450
3. On 23-Feb, i got to know that there’s a delivery short of 157 shares.
I would like to know what are the possible help i can expect from a broker, as in my case i didnt got any support/help from my broker except for the return that i have to be ready for penalty.
Arent he supposed to have got the short in my account adjusted from his other client holdings ? or he should just sit quiet and enjoy brokerage ?
Please advise.
Thanks,
Neha, the broker can’t debit shares from other client holdings to make good of those 157 short shares of Jet. If a broker is doing this, he is not being compliant.
Sir ,
My question is not related to this topic..sorry to post it here but i just want to know how did we add the bank nifty and nifty spot index values(tickers) in ZT?
Kirti, press Ctrl + I, an index box opens on the right top of the page. You can right click in it and say add indices.
Good Evening Nithin, Today I purchased 1300 shares of CAIRN India at Rs.229/- per scrip in EQ-Cash segment under CNC product type. Ideally I should sell them from wednesday, but if i sell it on monday under CNC as BTST trade then will auction penalty get levied on me ? Or shud I wait till I get delivery of aforementioned shares by Tuesday evening into my Demat A/c. and sell thereafter?
You can sell BTST on monday, but what you need to realize is that you carry a small risk of short delivery. Such a risk is quite less for a stock like Cairn. To be safe it is always best to sell after taking delivery.
Thanks Nithin for your prompt reply. I have now decided to sell Cairn only after taking delivery to prevent even a small risk of auction penalty due to short delivery consequences.
for future delivery of a particular stock,for example march expiry of centurytex_fut @596rs
500 shares a lot means 500*596=298000;means almost 3lakhs i have to keep in my account or not?or i have to keep 25% or 50% of the said amount.
Saju, if you are trading futures, you need only a small margin of that Rs 3lks. I’d suggest you to go through this module: http://zerodha.com/varsity/module/futures-trading/, everything you need to know.
Hi Nithin,
I only have trading a/c with Zerodha and have icicisecurities Demat a/c linked with it. So shares bought as CNC through Zerodha gets delivered to icicisecurities Demat a/c.
Can I sell those shares through Zerodha? If yes, please guide me through the procedure or any other/better alternative.
If ICICI demat is mapped, yes shares go to your icici demat. You will not be able to sell with us, you will have to use ICICI itself. If you want to sell back through us, you need to open a demat with us as well.
I had recently purchased some shares of south indian bank on Mar 31 , 2015 . I still dont see these shares in my holdings . I would like to know whats happening with this . Thanks in advance .
Bhargav, we had updated this on bulletin: https://zerodha.com/marketintel/Bulletin/ , it was because of settlement holiday.
I am using zerodha mobile trading application. I bought few shares 3 days ago through CNC type. And order to sell but rejected. My demat account also with zerodha. How to sell delivery order.
You have to use product type as CNC, if you are facing issues, best to send an email to [email protected]
Hi,
For BTST trades, how gains are taxed –
(1) For someone who is ‘Investor’ and has done BTST say 2-3 times in a financial year?
(2) for traders for whom 33.3% taxation usually is applicable?
(3) Suppose for a trader in an year penalty amount say is Rs 10000, is this deductible under some head, say expenses or loss or so while preparing tax returns?
1. You can consider BTST as STCG (short term gains)
2. If you are trading as a profession (if you trade F&O), then it is considered as business income. You are then taxed as per the slab, the highest being 30%. Check this post.
3. What penalty are you talking about?
Thanks Nithin… So I understand BTST will be business income or Short term gain but not ‘Speculation income’ then…
Regarding penalty…
When I convert my delivery trade to BTST, from your explanation above I gather that below event is also possible :
‘Person from whom stock is being transferred to me may not ‘deliver’ on T+2, in which event exchange arranges to allocate shares via auction’
Scenario 1: I wait for T+2 to take normal delivery => no issues as exchange arranges even if original person selling backs out.
Scenario 2: Say on T+1, I convert to BTST and sell that stock, but person selling backs out…, in which case, I actually don’t have stock to sell on T+2 and I default, then a auction penalty fee is charged to me. I am talking about this auction penalty fee if can be deducted in some way
Thanks,
This thing with BTST is a grey area, best you also consult your CA. The CA guidance note, considers intraday equity as speculative, but in a BTST trade we pay STT as if it were a delivery trade, and also the stocks come into the pool and go out. So I’d say you can consider it as business or STCG.
Yes, that auction penalty can be shown as cost towards transfer of sale in your ITR.
Hi Nithin,
Am pursuing doubt in above topic. after few weeks…
When I convert my delivery trade to BTST, from your explanation above I gather that below event is also possible :
‘Person from whom stock is being transferred to me may not ‘deliver’ on T+2, in which event exchange arranges to allocate shares via auction’
I gave 2 scenarios which you clarified..Thanks.. Need help how below scenario gets handled?
Scenario (3):
Say I already hold 1000 shares of X company in my Demat a/c.
I buy 200 additional shares of same company say Monday
I sell 200 shares on Tuesday under BTST (will this be even available for sell in BTST as I already hold ?)
On T+2 , Wednesday, the person selling backs out..
A) In this case, since I already “hold” this stock, how will the adjustment happen in exchange?
Is the match happening against existing 1000 shares I have & I wont get penalised?
Or will it be specifically with 200 shares just bought & penalty is applied?
B) How Demat debit (or credit if involved) happens in above scenario ?
Also,
i) How best accounts be maintained for such transactions of trading where one both does both delivery based trading and also BTST? Does one get separate statements for delivery based and BTST?
Thanks Much,
Regards,
Vivek
Dear Tithin,
Sometimes I noticed that when I buy stock in CNC mode I can’t see in t1 Holding ….
What could be the reason…If it can’t appear I can’t ATST/BTST…
Aditya, today is a settlement holiday (DP’s are closed on occasion of Buddha Purnima), we declare all such announcements on Bulletin: https://zerodha.com/marketintel/Bulletin/117
Hi nitin…I bought 2500 in( nse )shares of Tatapower on tuesday…can I sell today I.e.Wednesday…any chance of risk if I sell today.
Tariq, you can sell before delivery but there is always a slight amount of risk with this.
Hi Zerodha,
Can u pls explain if I bought 100 shares of Abc in MIS in intraday and end of the day I want to convert it as CNC for overnight with enough funds in my ac.
what will be the STT charges ?
Little confusion on below lines
“Demerits: If traders are looking to convert intraday positions to delivery, you need to keep in mind that STT (Securities Transaction Tax) will go up almost 10 times if you decide to keep your intraday positions overnight. ”
Above Tax is only for BTST/ATST users ? or common ?
Stt for intraday is 0.025% on selling side and for delivery it is 0.1% on both buy/sell. As soon as you hold any equity trades overnight, the STT is charged like delivery trades which is much higher.
Thanks for your reply, pls make sure your answer…
So if I bought in CNC and sell that in same day…. it will be considered as intraday so that stt charges will be 0.025% as how zerodha online brokerage calculator calculates….right ?
if I bought in CNC hold overnight…then it will be converted as delivery trade after the trading hours…so that charges will be considered as delivery trade so that stt charges will be 0.1% as how zerodha online brokerage calculator calculates….right ?
Yes to both.
Thank you very much 🙂
Hi Nithin,
I understand the STT charges are 0.025% Intraday charges if shares are bought and sold on the sameday with CNC product type. And STT charges are 0.1% on both buy and sell if BTST is used. What about the brokerage charges you collect. Will they be Intraday charges even if BTST is used.
If you do intraday brokerage is 0.01% or Rs 20 whichever is lower per executed order. It is 0.1% or Rs 20 whichever lower if you do BTST.
Thanks Nitin. That clarifies.
Hi Nithin,
So ultimately charges of BTST are same as that of Delivery except that the DP charges are not collected.
Also as I had referred the complete thread I understand that DP charges will be levied if BTST is done on T+2.
Is my understanding correct.
hi, i want to know about fund lien/unlien Zerodha linked with the bank or through NEFT/RTGS ?
What about annual maint. charges ? DP charges?
n please tell me in brief about all charges ?
m new to share market i’ve a SBIcap but i wannna to switch to zerodha.
n please clarify when i use BTST … if i buy a share then sell this share after 1 or 2 days it will be charged intraday or delivery ?
I have a query revolving around the time 3:20 p.m. If I buy a share using the CNC option and sell it on the same day using the CNC option but after 3.20 p.m., then will that trade be considered as an intraday trade and I be free of any share delivery obligations?
Yes Jim, you can sell it at 3.29pm and it will still be intraday. It doesn’t matter what product type, as long as your net position is neutral at the end of day, you will have no obligations.
Why am i not able to find a specific EQ in zerodha terminal?
Can you tell which stock, everything should be visible.
Hi Nithin,
I have linked hdfc demat with my trading account. I have read that I can only buy shares from my zerodha trading account, but can sell only from hdfc trading account.
How do i do BTST in such a case?
Thanks,
Shankar MR
You can still do a BTST trade because you’d be selling before receiving delivery of shares. Once the stock goes into your demat, you wouldn’t be able to sell. Do note that there’s always an inherent risk associated with doing any BTST trades as explained in the blog above.
Plz clear buy and sell for Rs20 or buy for Rs20 & sell forRs20.
As per website shown their 0.1% for delivery and 0.01% for intraday or it will be charge 20Rs. ?
It is Rs 20 per buy and Rs 20 for sell. We also give the benefit that if turnover is less than you have you have to pay either 0.01%/0.1% or Rs 20 whichever is LOWER.
sir i tried to square off my h1 holding but it did not square off my stock. if stocks can sell before getting delivery then why is it showing as can’t square off
Sandip, best you send an email to [email protected] with your client ID. There are certain stocks like those in T2T category or Z category on which BTST/ATST is not allowed. It could be that you are trading one such stock.
Like t know in case of BTST, the amount receivable, will be available as margin or not?
Yes, you can use the sale credit realised from a BTST trade to take other positions.
Very helpful article and support!!
My query is :-
As mentioned, if we have bought as CNC, we can only sell after taking delivery as the system won’t allow. There was also mentioned that we can square off the CNC type position on the same day (T day) , and then it will be treated as intraday. How to execute that as the scrip won’t be shown in the holdings.
Rahul, when u buy stock as CNC, it will start showing up in admin positions (it reaches holdings page as T1 the next day and T2(delivered) after two days). So if you have bought as CNC today, you can sell the same day from admin position window or by placing an opposite order.
Thanks!
hi nithin,
i have one query related to BTST, if i sell one stock which is i am holding on T+1 at higher price and on later half of the day i acquire the same stock at lower prices. How the settlement will be happened.
Will be considered as an intraday trade. You will continue to hold the T1.
Hi Nithin, if I buy a stock under CNC, can I sell it on the same day?
Is it possible? And if it is possible than please explain it as mentioned below
Suppose I bought 5000 stocks Of SBI @ 350/- and sold it on the same day @355/-
What will be the charges?
If you’ve bought under CNC, make sure you sell it under CNC. It’d be considered as an Intraday trade and all charges as applicable for Intraday trade would be charged.
You can check the charges on our brokerage calculator here: https://zerodha.com/brokerage-calculator
Hello
If I have bought shares using levarage with cover order, Can I convert that lot into BTST/ATST??
Cover order positions can’t be converted to any other product type. You have to square off CO position and take a fresh position with product type CNC. For CNC position, there’s no leverage given.
Sir , Thank You For Detailed Explanation on BTST Topic, I am customer of Zerodha, My Query is That I purchased the Stock on Wednesday on CNC basis, so, when the stock is going to Credit in my Demate Account.
T+2 i.e friday evening.
Sir, I Brought The Share about 100 under CNC Basis and its delivered to my Demate Account, Unfortunately I Sold The Share 100 and it comes to -100 its Minus
[…] BTST/ATST( Buy/Acquire Today Sell … – Traders, In this blog we shall talk about BTST/ATST which stands for Buy Today / Sell Tomorrow or Acquire Today / Sell Tomorrow. This is a facility offered … […]
Sir, when you do BtSt is dp charges payabale. As u said dp charges are payable when there is a debit from uour demat account. But when you do btst though u sell tomorrow the scrip which we bought initially gets credited to our account on trade plus 2 and then later on its debited right.. Hence dp charges are to be payable right?
With us DP charges are not applicable on BTST. What we do on T+2 is that we don’t take the stock to your demat account, we directly deliver it back to the exchange from our pool account. This way saving you any DP charges payable.
Sir Plz make 100% assured btst settlement in stock segment like all other brok house…it will be very helpfull for all of us…except that zerodha is best……….
Its not in our control. If the Exchange doesn’t deliver stocks on T+2, there’s pretty much nothing we can do about it. Its best to take delivery of stock and then sell.
In Kite, I made a transaction – this did not show up on the OrderBook which was strange because it did not show me any sort of error while I made the trade.
I then logged into Pi to check and the trade showed up.
Logged in again into Kite and checked OrderBook and it does not show.
Called up support and explained the problem. They probably did something and now the trade shows in Kite.
Question is: Is this platform tested completely? There is a bug somewhere that needs fixing.
@venu…i hv 2 trading ac kotak & zerodha..now suppose i buy 50 shares of ubl at 950 today & sell it at 965 tomorrow..in kotak there is no auction fear i know it as i did it many times..but in zerodha is it possible?.if not then why?
The risk is there with every broker. On T+2, if the Exchange doesn’t deliver 50 shares, then how is the broker going to settle the obligation due the next day? It either goes for auction or the broker settles it from shares if he is holding in his own beneficiary. This is why I said, its best to take delivery of shares and sell them. It may not happen to an A group stock like Kotak,Reliance, but the possibilities are still there.
Can I find my DEMAT status with zerodha ?
Can I sell if I don’t have DEMAT with zerodha, if not why ?
Then how can I sell it
If you’ve to buy and sell shares for delivery, you’ve to open a demat account. If you’ve already applied for a demat account, do get in touch with your Sales manager who can give you an update on the status of your account.
@venu…sir there lies the problem because the type of market is going on nowadays & also with the increased lot size in future its nearly impossible for small retailers like us to sustain in the market..as normally it has been seen that some stock may be down today but it may be up by tommorow buy it may go down on the day after tommorow..so without assured btst in gr-A stocks its becoming very tough to survive…
can i deposit shares of a Non-listed company into my DEMAT account ?
Yes. You can hold these shares in Demat format in your demat account.
No
Nithin / Venu,
Will I be able to sell / place order for shares bought under BTST in the pre open market using CNC.
Yes. You should be able to.
Venu, holdings for scrips bought while they are awaiting to be credited to demat a/c are updated in T1 and actual Holdings for this shows 0. I am not sure if it will allow placing order in Pre open, but I will get back to you tomo after I try this out. Thanks.
Dear sir,
If I buy a script as CNC and sell the same on T+1 day(next day) under BTST option, then under this scenario will the amount be credited to my account on the same day or how long I do have to wait for to use the capital again?
Thanks
Funds will be credited to your account the same day. You can use it to make further trades, but to withdraw you have to wait till T+2.
Can i buy and sell shares on the same day using CNC product type
Will it have any risk of auction
What type of brokerage is applied(Delivery or intraday)
Can we choose any stock(Group A to Z)
Send the link of stock of T2T segment to avoid in the above scenario
Thank you
If you’re buying and selling shares on the same day, it’d be considered an Intraday trade and all charges applicable to Intraday trading will be levied.
There’s no risk of auction unless you’ve short sold something and the stock hits circuit in which case you wouldn’t be able to buy it back.
If you’re trading in those stocks on which F&O trading is there, no risk since there’s no circuit for such stocks.
Resp Sir,
Not understood the following
There’s no risk of auction unless you’ve short sold something and the stock hits circuit in which case you wouldn’t be able to buy it back. plz explain with and example
Thank you
Resp sir
Can we sell and then buy the share under CNC
Thankyou
Using CNC, you can sell only if you hold shares in your demat account. But yes if you hold, you can sell and buy back.
Hi Nithin,
Please confirm :
1.Can We sell stocks if we have bought them under CNC, no need to wait for T+2 ?
2.Can we sell stocks under MIS and buy back same day before 3:20 pm even if we are not holding these stocks ?
Thanks
1. yep you can
2. yep
Resp sir
Any difference is there between (MIS and CNC intarday) or they are same.
Thankyou
All MIS positions get squared off at 3.20pm, but not under CNC.
Dear sir, really i thanks to your nicely explained, but one thing i want to know please for example some broker provide margin for BTST orders and for example monday i buy 25 shares of SKFINDIA @ 1200 = 30000/- and within T+2 days i mean wednesday morning before opening the exchange i have to pay to my broker this 30,000/- Rs. but i can not transfer 30,000/- Rs. to my broker this time so till tuseday evning or wednesday till 3:30 pm i sold any others BTST possition stock or Cash possition stock from my portfolio then it will be equal that 30,000/- Rs. Debit or i have to pay any interest because from my angle in stock exchange trading running behalf of my pan card and every account Debit or Credit on the basis of my pan card so if that 30,000/- Rs. was debit on me and before wednesday morning or end of trading wednesday i sold any others btst or cash stock from my portfolio then debit will cleared and no any interest will charged brokerage firm. please reply me i will very thank full to you thanks
Currently at Zerodha, we do not allow you to buy stocks exceeding what funds are available in your account. You don’t buy and pay, you have to transfer funds initially and then buy.
We are in the process of starting funding Equity trades, even if you buy stock for BTST, interest for 1 day will be charged till you sell stock from your portfolio or any other BTST position.
Hello Nithin,
1) Regarding Trade settlement, either T+2 or Auction in worst scenario are 100% assured and trade will get settled any-how on Max T+3 ? The reason I am asking as I read comments of some Zerodha members above who have complained that even after T+3 their demat account is NOT showing their delivered equities?
2) as you have explained, even with BTST there is chance of defaulting short in worst case scenario of Auction, Can we sell the Equity on T+2 day morning as safest option ? (unless some thing happens as I mentioned in Question 1 from Broker/ Zerodha)
If possible, what option do we choose for this T+2 selling equity (with still waiting for trade settlement on same day or next day as result of Auction)
Thanks,
Sandesh
1. On T+3 if exchange can’t find any stock in auction, they will settle the funds in cash. So in these cases, stocks won’t show up after T+3.
2. Even on T+2 morning, there is very small risk you carry like mentioned in point 1. Best to sell only after taking delivery, which is by T+2 evening.
Thanks Nitin for Prompt reply. I have recently opened a/c with Zerodha but want to clear some basic Q’s before I start trading :-).
Compare to Cash segment with Futures, if we buy any Lot with Future do we have to give any additional cost beside underlying stock prize like we pay premiums for Options CALL/PUT?
Example – for ABC stock, 1 lot of 1000 with Rs 200/share cost 2,00,000 and with margin 15%, i just have to make sure in account Rs 30,000 or +/- if prize fluctuates before expiry/ sell. No extra amount beside this, Right?
So suppose if next day prize of underlying stock increased to Rs 201/share, my account will be in green color 🙂 compare to Options where i have to wait till prize of underlying cost surpass the additional premiums per share. Right?
Also, how does trade settlement happens with Future contracts, does it happen on same day of selling or do we have to wait till expiry date/ T+2 like CNC, even if we sell the contract before expiry date?
Thanks,
Sandesh
Yep, you are right. Settlement in F&O is T+1, if there is profit it gets credited to you next day, if there is a loss it gets debited immediately. If you exit positions, it gets credited the next day.
and there is NO risk of any Short delivery or Auctions with Futures contract settlement??
Thanks,
Sandesh
No. There’s no concept of ‘delivery’ for F&O contracts since they are all cash settled.
Thanks Venu/ Nithin.
Regarding Auctions in CASH segment, is there any possibility that Auction doesn’t work out well and trader doesn’t get his/her due shares, even on T+3 day? Just checking remote possibility….
No, the Exchange guarantees settlement which means that you either get shares or money back. On T+3, if the Exchange isn’t able to buy shares from the Auction market, then the close out (fund given in lieu of shares) is typically 20% higher than the price the stock is trading at.
Quoting this from the NSE website:
Thanks Venu !!
Hi Venu,
I had a similar situation recently with my shares. I had bought 225 shares recently and as per the T+2 rule received only 129 with 96 short. After the auction took place I received 96 on T+5 but what happens to the penalty amount that is due to me. Since I lost the potential sale opportunity to liquidate at a higher value in those days. In fact i traded 129 at a higher rate and now this 96 shares that i have are being traded at a lesser value than what i bought it at thus making me lose the opportunity to book profits on total 225.
The Exchanges guarantee settlement, in the sense for money paid towards shares, you’ll either receive shares or will receive money back. The probable profits that you could have made is debatable. The only logical explanation could give is to buy the shares back with the same credit that you’d have received if its trading at around the price that you bought it.
[…] delivery is the risk you take when trading BTST (Buy Today, Sell Tomorrow), read this blog for […]
Hi,
I have a few questions.
1. If I buy a share in BSE can I sell it on NSE on T+1 or T+2 day?
2. I noticed there is no DP charge if I sell shares within T+2 day. But suppose I got 100 of X shares in demat holding previously and bought another 50 of X on T day. Now if I sell 25 of X on T+1 or T+2 day, will it cost any DP charge?
3. For currency trading the exchange is selected as CDS. Doest it mean NSE, BSE or MCX-SX? How can I do currency trading in BSE?
4. How can I do commodity trading in NCDEX?
Your zerodha Pi terminal is wonderful. Thank you for providing such elegant trading software.
Thanks & Regards,
Rajat
1. No, you cannot sell stock across Exchange without taking delivery. Once the shares hit your demat account, you can sell it on any Exchange.
2. Yes, in the interest of our clients we debit shares in demat first. Although you may have to pay a small demat fee, you’re free from risk of auction in case shares aren’t delivered by Exchange
3. It means NSE. If you’ve opted for MCX-SX, you’ll find an option called MCX-SX CDS. We’re yet to go live on BSE CDS
4. We’re not live yet.
Dear Nitin, I bought 140 shares of Tainwala on 4th Jan 2015 and sold all of them on 5th Jan 2015…out of which 40 shares got short delivered….now today its 13th Jan….and in my holdings i can see 20 sharez of Tainwala with buy value as 0 and P/L as N/A…and my some amount (4426 rs) is blovked for it….now i need to understand what is to be done with it to free 4426 rs…and for the same i have raised a ticket (Ticket #201129) too…but no response yet…kindly help.
You did a BTST transaction where you bought and sold 140 shares. 20 shares were short delivered to the Exchange. So we’ve posted an auction for 20 shares on 07/01/2016 and have delivered these shares to you. An auction contract note would have been sent to your email Id.
So i hold 20 shares in my demat and to get my money, i need to sell…is it??? Kindly help…
Thanks Venu for a quick response…Viraj has provided me the solution as “Yes, you can sell the shares and get the credit in your account whenever you required.” Thanks a lot Viraj and support team.
I bought 20 shares of wockhardt for Rs. 1000 and sold 10 shares on same day for Rs. 1050 and retained 10 shares. How trade is treated MIS and CNC or only CNC?
10 shares as MIS, 10 as CNC
How btst trade is treated for taxation,speculative or short term?
It can be taken as Short term capital gain.
Considering above example of Wockhardt shares, if I purchase 20 share in 2 trades at price 10 shares for Rs.995 and 10 shares at Rs.1005.Then I sold 12 shares in 3 trades on same day at price of 4 shares at Rs1025,4 shares at Rs.1050 and 4 shares at Rs.1060.What would be the purchase price considered for calculating capital gains for remaining 8 shares when those will be sold after say one month.
It would depend on the method of accounting you’re following. If you’re following FIFO, then the average price will be 1005 (last 8 purchase price). If you’re following weighted average method, your average price will be 1000 {(995*10)+(1005*10)}/20 = Rs.1000.
Just make sure the method of accounting is kept consistent.
Thanks!
I believe your P&L software is based on FIFO and It takes care of any number of trades of buy and sale trades.
Yes, we consider FIFO for all computations.
Last year I found some errors in P&L statement. The actual Capital gains were around Rs.30000/-
where as your statement was showing around Rs.10000.I think you should do sample cross check by another software. It is actually not a software but it is a simple excel formula without any macros. It is FIFO_Sumwise. It is available on internet. It gives buying cost if trades are sorted in ascending order by dates.
Hi,
1. I received a mail today regarding 25 shares of Filatex India which I bought on 25 Jan, among which 5 shares have been short delivered. I thought shares get short delivered if it hits Upper Circuit. The script didn’t hit UC in this week. How does it get short delivered? Doesn’t the brokerage firms auto square off the short positions when there is a provision to do so?
2. I also noticed in some scripts where there is a big gap between bid and ask price, when I place a buy order, a higher bid is placed at the same time. If I cancel the order, the higher bid gets cancelled too. It is as if someone wants me to bid higher. Is it a sign of operator manipulation?
3. Is there any leverage for option buying in MIS, or BO or CO?
4. Is there any extra leverage for option writing as BO or CO if my stoploss is 10 points?
1. Not all brokers auto square off positions. So the person who sold you 5 shares didn’t deliver to the exchange.
2. Hmm… don’t really think it is manipulation if it is for really small quantity of stocks.
3. Only for Nifty options we give leverage if you use BO or CO.
4. Yep, 25% of option writing margin or 4 times.
I trade using MIS prduct code , and buy and sell stocks same day . Is there chance of auction penalty ??
Same day if you have bought and sold, no delivery happens. So no auction penalty.
Hi I bought 75 share of Tata motors yesterday using CNC and now sold it the same through CNC but the amount is reduced from my margin. How do I know that is BTST of fresh sell?
I do not hold zerodha demat
Suresh
IF you have sold it as CNC it is BTST itself.
hi, if we sell some shares as CNC which are already in our demat account and the very next day we buy back same amount of shares( as CNC) of that very company at a lower price, will the shares which we sold the previous day will get debited from our demat account or not ?
Yes it will get debited.
why when i buy shares net value shows in – (eg -3500) even if i had sufficient amount in account.
Net value shows where? Can you explain it a little more in detail.
Suppose I will use btst facility.On Monday I buy the shares.Tuesday I sell it.then on Thursday how could I deliver the share to exchange as already sold it on Monday?Where can I get the deliver to exchange option in kite?Within which time I have to deliver it to exchange on thursday.Plz somebody help.
If you’re an online client who has signed the PoA, your broker will settle the shares by executing the PoA. There’s nothing you have to do to settle the transaction. Same with BTST, the only difference being the broker not being able to settle it on account of short delivery from the Exchange.
How to get the list of stocks in nse which are “liquid stocks”. please provide me the link.
There’s no list as such. Normally all stocks that form part of Index & such stocks that belong to group A are liquid in nature.
In Zerodha trading options, when be buy any share under MIS category , it remain active for intraday only and on the same day, adjustment happened by selling shares at 1500 Hrs. However short selling is not active under MIS category.
But how can be prolonged the transaction for 2 days i.e. if purchase on Monday under MIS category and sell the same on wednesday.
Leverage currently is available only for intraday. Not possible for the next day. We will start this soon.
Nithin sir please clear my confusion.
Suppose I buy 20 stock at rs 100 and after that the price go down to rs 95 and again i buy 5 stock at rs 95.total buy stock=15. now the stock price is 98.now if i sell 5 stock then which stock will be sold?means the stocks which i bought at rs 100 or the stocks that i bought at rs 95?
It is always first in first out, so what was bought first will be sold first. I am guessing you are asking this in regards to taxation, because other than taxation this doesn’t have any significance.
Hi, quite informative blog. I have a query. Suppose I buy 10 shares of X at 100 rupees each today from BSE and then sell 10 shares of X on the same day at 110 rupees each at NSE. So how does this work, since I ll get delivery only on T+2 and what about the scenario where I buy and sell it on the same exchange on same day. Since delivery of stocks can happen on T+2 day at evening and I am supposed to give the stocks to exchange where I sold them on T+2 morning.
This is not really possible. Check this answer: http://tradingqna.com/2163/arbitrage-buying-equity-nse-and-selling-it-bse-is-it-possible
Hi nithin sir,
Please add btst/atst option in zerodha mobile application version or atleast in zerodha kite website.
I generally trade on mobile but there is no option in mobile app and neither on kite website.
Fazal, you just have to sell using product type as CNC. There is no separate BTST option. So u can do BTST on both mobile and kite web.
Today(01/04/2016) I tried selling some shares of bhel which i bought yesterday(31/03/2016) selecting the product type as cnc but the order get rejected.
Reason mentioned was:
1st time:
RMS:Rule: Check holdings for entity account-RF0164 across exchange across segment across product
2nd time:
error user/user_target not logged in
We had shared this on terminals and as a SMS: https://zerodha.com/marketintel/Bulletin/166. Since it was a depository holiday, no BTST was allowed.
Is Zerodhaa provide any margin for btst/atst like intraday or I can buy only the amount of share depend upon the cash present in my account
Hi Nitin,
I am new in trading and wanted to check few things regarding BTST, Bracket and F&O.
1) How do I enable the BTST option in the software PI?
Example – 1) I have bought 100 scrips of TCS on April 26. If I am not sure whether I want to sell my scrip on April27 or maybe wait more than T+2 for better price. So If I enable a BTST option but sell it on T+4 do I end up paying more charges/taxes instead of selling it on T+1
Example -2)If I convert my MIS to CNC position what are the additional charges? E.g I Buy 100 TCS scrips @2500 expecting it to go up intraday. Hoever noticing a fall in the price I convert it to MIS/
2)If I have made a MIS Bracket order of buying Infy shares can I convert the position to CNC and carry my position overnight or T+2/3/ whatever?
3) Can you please let me know the tab options in the software PI to access Futures and Options
Thanks,
Arindam
1. BTST is enabled by default for everyone. So you can sell any stock on the next day itself or anytime you want. No additional charges.
2. No, you cannot convert brackets to CNC. You will have to square off bracket and place a new CNC order.
3. Check this webinar on Pi or dedicated blogposts.
Hi Nithin,
Thanks for the info.
Hi Nitin,
I am new to trading. Need your assistance on something. Here’s what happened:
> On 25/04, I bought 3 stocks worth approx 15k (CNC)
> Next day on 26/04, i squared all of them off to contain my losses
>In such case, the funds should reflect in my free cash and i should be able to take new positions from 26/04 itself, right?
> If so, that’s not the case as on 27/04 EOD, my cash is still blocked and i am unable to take any position and my equity holdings shows the same approx 15k amount and holding shows the same stocks as QTY 0, T+1 QTY (original quantity bought)
>I dont have any open positions either.
Kindly advise when will my cash be unblocked and i’ll be able to take new positions?
Also, i heard you get a contract note on the registered email id at the end of each trading day with the trading done and brokerage charged for the same. It seems i am not getting the same ( i have also checked my spam folder) .
Please help. Thanks for your time.
Ajaz, send all such account specific questions to [email protected] with your client ID.
Hi,
What all charges will be applied for T1 qty shares while selling them.
DP charges will be additional, Rs 13.5 per scrip sold.
Second Scenario: You bought on Monday
and Tuesday the price of Reliance was Rs
810. You decide to sell the shares, so you
choose the option CNC and sell it….
ok tell me one thing that…
if i sell share Tuesday about 11 am or before ..when
when will cash balence credited in my trading account for another trade or position…???
can i do another buy or sold on tuseday by that money….???
The money from sold shares will be received on T+2 days to be withdrawn. But you can use the credit from the sale to buy more.
Hi Within,
In this article, you have mentioned:
Demerits: If traders are looking to convert intraday positions to delivery, you need to keep in mind that STT (Securities Transaction Tax) will go up almost 10 times if you decide to keep your intraday positions overnight.
By the above statement, do you mean evertytime we convert Intraday stocks to delivery, we need to pay 10times STT?
Yep, if you buy stocks and hold it to the next day STT goes up 10 times. But note that this is not for converting product type from MIS and CNC.
Yes, the rate of STT for Intraday transaction is 0.025% on the sell side whereas for delivery transactions it’s 0.1% on both sides. So effectively it’s 4 times over as per current rates.
Hi nithin, im jithin.
I’m having doubt, suppose im having 10000 in my account and im buying Aarey Drugs & Pharmaceuticals Ltd at 40 rs 250 shares (10000 worth share) and i’m selling it at 42rs (2rs profit per share on the same day) (Monday intraday).
Will i be able to trade on the next day (Tuesday) since my account would be empty bcz of the last trade because of 3 day Rule. i heard it will take 3 days for the money to be transferred into my account or will i have to wait until the process is over ( 3days) ?
Please help
Jithin
If you do intraday, the money is available immediately to trade more. Even if you buy stocks and sell tomorrow, you can use the credit to buy more immediately.
Hi Nithin,
Where is the button option for BTST in Pi.Pls help as I am using Pi for the first time.
Thanks
Chandana, no separate button for BTST. You can buy all stocks normally (using product type CNC) and you could sell it tomorrow using same product type CNC.
Thanks Nithin
In such case what week be stt. It will be as per intraday or as per delievry trade
STT as per delivery.
1. In the case of short selling what happens if i’m selling in the morning and at the covering time in the evening not enough volume is there to cover, in that case what happens ?
2. Is there level 2 data available in case of pi ?
3. When is it possible to withdraw money from my account ?
4. Do pi software needs high end laptop or pc to trade? Which setup is required?
5. Can you name some people who do well in day trading ?
1. It becomes a forced short.
2. Yep
3. You don’t need a high end laptop, but more powerful the better the performance will be.
4. Name? 🙂 don’t know.
sir i have one doubt. Can I Do that If i bought 100 quantity of X stock in CNC option on Monday at 70rs and i sell at T-1 (Tuesday) in CNC option at 75 now again i buy 150 quantity of same X stocks on same day (tuesday) at 80??? Now What will be my net quantity and price display in cash position or admin position??
On tuesday, 100 sold at 75 and 100 (in 150 bought) bought at 80 will be considered intraday trade. So there will be a loss of Rs 500. You will continue to hold 100 bought on monday at 70 + 50 bought at 80 on tuesday
In interaday trading-:
How many times we sell Nd purchase stocks in mis trading…….
You can do it as many times as you want.
Where can i see my dp code in zerodha kite
Go to Q from within Kite and check out profile.
Sir,
Is in Future Zerodha planning to provide Short selling in overnight retained Equities.
I understand, right now short selling is allowed only in MIS and not in CNC trades.
Regards,
Yuvraj Singh
Hmm.. donno if we will allow this in future.
sir,i had one doubt if i invest at 2:00pm on monday and i sell it on tuesday morning if i see the company in profit when my profit in credited in my account. i am little bit confused about risk management in btst can u explian with simple example
When you sell stocks, you get the money on T+2 days to withdraw. So if you sell on tuesday, you get it on thursday to withdraw, but until then you can use this funds to trade more. In BTST, you are buying paying 100% of the money, so no risk of any positions getting squared off.
thank u sir for ur reply in last you replied “‘but until then you can use this funds to trade more”its not understanding to me sir can u please simplify it sir
If you sell 1lk worth of stocks on tuesday, you can withdraw it to your bank account on thursday evening. But if you want to use this 1lk to buy more stocks, you can do it tuesday itself.
now clear sir thank u for ur reply
Sir,
I want to know that can we trade in shares whose per share price is low like 5 Rs per share at zerodha? If not then what is the lower limit?
Yes, you can trade any share that is trading on the exchanges that you want.
” Buy strength and sell weakness – Strength is represented by a bullish (blue) candle and
weakness by a bearish (red) candle. Hence whenever you are buying ensure it is a blue candle day and whenever you are selling, ensure it’s a red candle day.” These lines are taken from Zerodha varsity, Module 2-1,Chapter-4, page 30. I am having a confusion with it. Why should we buy a stock on a blue candle day when the price is high and sell it on red candle day when the price is going down. We will incur loss. Rather it should be opposite, that is, the share should be bought at the end of the red candle day when the price is low and sold at the end of the blue candle day when the price is high. I need a justification. Sorry for bothering you, I am new to this.
Aryan, it is best you ask this question on the same Varsity chapter.
Sir,
Suppose I have 100 reliance shares in my DEMAT account. Now if I do a intraday or STBT/BTST trade. Will I incur any DP charges. What happens in case of short delivery.
Thank you in advance.
Yes, DP charges are deducted.
When you do a BTST trade, there’s still a risk of short delivery which is why, to safeguard the interest of our clients, even if it’s a BTST trade, we debit shares from the available balance and meet your obligation so there’s no risk of auction.
Sir,i want create an demat&trading account but iam little confused with the instructions can u please say me the instructions in short of creating an account in zerodha
Check this post.
ಧನ್ಯವಾದ!
Hi,
I want to know, if I sold some delivery shares of mine in morning, I get the margin Money updated . can i purchase some new Shares with that money on the same day or I have to wait till T+1 , T+2 to get that money credit ?
Yes you can buy more on the same day.
hi sir, i wanted to know whether the bank account is reqiured to open demat account (or) no need of bank account to create demat account???
Bank account needed.
Really Great work Nithin, specially Kite API is unbelievable.
I have a query regarding the risk you mentioned for BTST.
After reading the risk of short delivery in case BTST, I also thought that the same risk is also involved in the short selling on intraday trading (If after short selling circuit is reached). Since intraday short selling is highly leveraged, I think it has many folds of risk than BTST.
Please correct me if I am wrong.
Absolutely right. It is best to short only F&O stocks for intraday as they don’t have any circuits.
Hello Nitin,
In India, “we follow a T + 2 settlement cycle when trading stocks,” then what is the settlement cycle for Option trading since “F&O are contracts and they stay in your trading account till the end of expiry.”
For ex, in intraday trading, I buy 1 lot Nifty Call option premium @ Rs 100 at 9:20 AM and sell @105, at 9:30 AM. In this case:
1. May I go for another position immediately after selling of that particular lot (i.e. at 09:31 AM)?
2. If not, how much time it takes money to reflect in my trading A/C of sold lot?
3. If yes, can I use my profit amount to do another trade (in this case, one market lot of 75 no’s, Rs Rs 105-100 = Rs 5×75= Rs 375/- profit excluding brokerage and other taxes).
4. When I will be able to withdraw my profit money from my AC in intra-day option trading?.
Wishes
Madhav
1. Yes you can take another position. But the profits will be available only from next day as settlement is on T+1
2. You will be able to withdraw both profits and option selling value only on T+1
Can I get leverage from holding value for intreday trading.I am new in your platform please help me.
hi sir can u please tell me about f&o stocks, does there more money is required to invest in them?
we can do buy today sell tomorow for f&o stock.
Yes you can, suggest you to first learn about F&O here: http://zerodha.com/varsity/
In case stock was bought in cash on moday and sold also on same day, how will it affect me?
It will be an intraday trade, so either profits are credited or losses debited.
hello,is there have any brokerage on BTST or its free as delivery??
No brokerage for BTST trades.
sorry for the incomplete message..
Thanks for your reply.This is my frist trading day with zerodha and as per conversation with your sales head today evening he told me that selling within t2 will attract brokerage .
Only intraday trades are charged. You buy today and sell tomorrow, no charges.
Hii Nithin Sir Big fan of Urs Admire ur knowledge a lot..
I must thank you for providing us this awesome awesome platform.. In love with Kite..
And would like to request you to pls start providing leverage on Delivery and BTST trades and charge daily interest on debit balance at d end of each day..
Sir This wl help us to amplify our profits significantly..
Thank you!!
Regards
I have had a mixed experience.I had bought equal quantities of a particular share on both NSE and BSE (Day 1). It was a normal buy.The next morning(Day2),I placed a sell call (BTST) on both the lots in respective indices and made a good sum and my account didn’t have any share of this company.By afternoon, there was some good news in the company and I again bought the same quantity of shares on NSE in a Normal buy. However, the broker’s statement shows an intraday trade for NSE and a loss!Also the shares that had been bought and sold from BSE were reflected in my account the next day, instead of the second set that I bought on day 2.Is the broker right in terming it as an intraday trade(that too a short as my sell price was lower than buy price of set 2) when I had placed a Normal buy ?
If any shares are sold/bought or vice versa during the day, it will be considered intraday. It will not consider delivery holding from yesterday.
Thanks for your reply.So essentially it means that my trade was wrongly termed as intraday. The transactions were as follows:
500 shares bought of XYZ company at 2pm on NSE on day 1 in normal buy order
500 shares bought of XYZ company at 2:15 on BSE on day 1 in normal buy order
500 shares sold of XYZ company at 9 am on NSE on day 2 from margin
500 shares sold of XYZ company at 10:15 am on BSE on day 2 from margin
No position in DP by 10:15 a.m as also confirmed by broker.
again bought 500 shares of XYZ on NSE at 2:15 pm on day 2 in normal buy.
Day 3 shows 500 shares of XYZ company bought from BSE on day 1.
Contract note considers transactions of day 2 done on NSE as short sell in intraday trade and shows a loss in account.
Is this right?
If I got it right,
You should have 500 shares of NSE in your demat. 500 shares sold and bought on Day 2 is intraday.
You should have no shares of BSE as you bought it on Day 1 on BSE and sold it on day 2 on BSE>
500 shares that was sold and bought on NSE on day 2 is an intraday trade, that loss will show up on a contract note.
Best to send such queries directly to support desk of the brokerage.
Thanks for your prompt reply.yes, you are right.
Have already had a lengthy discussion with broker. That’s why wanted another opinion.
Thanks once again.
I am just beginner and started trading first time on 1st august. I have buy 20 share as CNC on 01.08.2016 and 100 Share as CNC on 03.08.2016 of Apollo Tyre. Then, I sell all 120 shares of Apollo Tyre on 05.08.2016 at 3 pm, in which only 20 shares shows in demat, 100 shares shows in T1.
Is it correct to sell, please clarify…. I am very confused……….please suggest for future sell transaction for delivery
It is best to sell shares only after it comes to your demat. In T1 you take a BTST risk as explained above. But if you have done, it is okay, on a stock like Apollo, BTST risk is quite small.
Hi Zerodha,
Do you provide margins for BTST (CNC)?
Not yet.
1)feature contract :: first sell then 2 or 5 days after buy, this is possibility..
2)same as option contract, this is possibility
3)ple explain sir and send me my mail id
1. Yes
2. yes
Suggest you to read through the futures and options module here: http://zerodha.com/varsity/
sir one doubt.suppose i buy 100 shares of xyz under cnc (or vise versa) and decide to sell on T+1 day.so as per you its BTST. i have two doubts:
1. if its an BTST trade then how are brokerages and other applicable taxed charged??? is it the same that is applied for intraday ????
2. is STBT possible in equity cnc mode?if not how can that be done
thanks in anticipation
1. No BTST is considered like delivery brokerage, so zero brokerage
2. No
thanks for prompt response sir,but what about the other taxes.are the other taxes charged more for an intra day trade or for a delivery based trade??
STT is much higher for delivery compared to Intraday (almost 10 times higher). Everything else is almost the same.
Sir,
As I am new for this field so I need to clarify few doubts.
1. How can we identify the liquid stocks, as you mentioned that the risk of BTST will be quite less on them.
2. If we do BTST then the STT charges will be for Intra-day or Delivery.
3. As you said for the case of Delivery, the shares will be credited to the Demat Account on T+2 day (between 2PM to 2:45PM). Is there any chance to credit the shares to the Demat Account before the mentioned time?
4. If the shares credited to the Demat Account and after that if I sell then the DP charges of Rs.15.53 will be taken. If suppose I do BTST (shares not credited to the Demat Account) then the DP charges will be taken?
5. Some times after buying the shares, the “Margin Used” shows negative value. Why and in which case?
6. If suppose I buy few shares as MIS, the brokerage charges of Zerodha will be applicable. On the end of the I thought to convert the positions as CNC of the same shares then on that case the brokerage charges of Zerodha will be taken?
1. Try to be in the top 200 stocks. Check this list.
2. Delivery
3. Exchange delivers around this time, so not possible before unless the seller is also a Zerodha client (internal adjustment).
4. Yes DP charges on BTST also, as the shares credit is taken into demat for BTST as well.
5. I guess you mean, after selling shares it shows negative value. Negative margin blocked value is like positive margin to buy stocks.
6. IT will be considered delivery if you hold it for overnight.
I had bought 8 shares of v-guard on 29th August for 1=1826 as cnc. on 30th August v-guard shares split into 10 share for one share ratio(10:1) and started trading from 1= 178, at the same time holding showed only 8 shares and when it reached 1=192 I sold it. Now after T+3 days(30,31,1,2) I have only 8 shares money. where is my other 72 shares? had Wrote to support @zerodha and got advice to read this blog. but didn’t get the answer.so help.will i get 72 shares and at which price.?
If any buyer is not available for CNC sell order how long i have to kept CNC order. Is there any other procedure to exit CNC order anyhow
You just have to place an order and hope someone buys.
Hi, I have a query. If I buy a stock for intra day trading in NRML/MIS on Monday and sell it within the same day. Would I be levied a fine if the person I am buying the stock from does not deliver shares to my DEMAT account by Wednesday? I understand that this fine will be levied if I am using CNC, however will this fine be levied even if I am using NRML/MIS?
Ashish, as long as you are able to buy and sell on the same day (irrespective of whatever product type you use), you will have no obligation/counterparty risk.
Thank you Nithin. 🙂
Nice article, worth reading
So, we have an option to buy shares as delivery, so my question is what other option we have to buy shares, instead of delivery?
And my second question is, what option should i choose if i want to hold the shares for long term..?
Thank you..
You can buy shares for intraday as well. You need to use CNC if you want to buy shares for long term.
[…] BTST/ATST( Buy/Acquire Today Sell tomorrow ) – Zerodha – Traders, In this blog we shall talk about BTST/ATST which stands for Buy Today / Sell Tomorrow or Acquire Today / Sell Tomorrow. This is a facility offered by most of … […]
Hi Mr. Nithin, My query is, if I bought 500 share @250 in CNC & sold it tomorrow @254. Now it is showing in my open position like -500 @254 & again bought it same day @ 246, again sold in @246.5 same. Will I get all profit or what?? Plz explain. Totally confused.
Yes,you get to keep the sum of all such gains you make.
I would like to ask that if I buy stock in CNC, the same stock can I sell as intraday, BTST or later?
also when stocks showing in my holding there not showing that these stocks are available for BTST.
Please remove the loss or profit amount after stock is sold in postions which is confusing always.it is not a need to any customer.
please provide btst stocks list in kite so that it is helpful to buy quickly after 3pm
Sivaji, we allow BTST on all stocks (except T2T).
please provide buyback option in kite to sell stocks under buyback directly
Buyback can’t really be done online like the way you are asking for.
please provide bse and nse option in one stock only directly to avoid delay by selecting seperatel bse itc and nse itc diferently.
Sir,
can sell with t1 holding ?
For Example: Reliance Buy on Monday and sell Tuesday
When exactly im able to complete my trade ? t1 status, t2 status ? t3 status ?
Yes, you can. There’s a risk though in selling before taking delivery of stocks.
Suppose I buy 10 shares of ABC on 1st oct and is being delivered to demat account and then again 10 shares of ABC on 20th oct . If I sell 10 shares on 21st oct , will it be BTST trade or will it be debited from demat account.
Is there an option to execute a BTST trtade instead of demat debit in such a case?
We’ll debit it from your demat. This is to avoid the risk of possible auction.
Why aren’t we allowed to do ATST/BTST trade in the OFFER FOR SALE shares. I was told by your team that we can sell OFS shares only when they are credited to the demat account.
There seems to be some confusion. You can do BTST trades.
It was showing the stock in trading account on Monday but on Tuesday it stopped showing. When I contacted support they told that it will show only when it gets into demat account. When I asked why it was showing on Monday(T+1 day) they were themselves not sure about it. As a result I was not able to sell it on Tuesday(T+2 day) and had to wait for wednesday to sell that.
Dear Kamath,
First I would like to thank you first for all services which Zerodha offers. Its awesome.
I wanted to understand whether we can do ST/BT. Selling it today and buying tomorrow?
Many a times we understand that particular stock is going to fall in coming days. So it gives an opportunity for ST/BT.
Is it possible to do so? How to do it?
Regards
Roshan, not possible unless you already hold stock in your demat.
Cheers,
[…] this post that explains the risk of selling stocks before taking delivery or when they are showing in T1. […]
Hello Sir..
Want to correct the above query…
If I feel that a share price may go down at the end of the day, which I don’t hold or own, can I sell that in the morning…and If yes…what happens at the end of the day..do I get that share into my demat a/c, or it is squared of just as a trade and my account is in debit/credited with loss/profit…
Nagaraj, you can sell/short a stock for intraday using product type MIS. All MIS orders are covered by 3.20pm, so it is bought back. This way end of the day your net position is 0
Dear Mr.Nithin,
I would like you to confirm my below conclusion for the above article.
Conclusion: So if I buy stock based on CNC, to avoid auction penalty, it is better to sell on the same day ( considered as Intraday not ATST/BTST) or after delivery.
Yep
Hi Nithin,
I have a query on BTST. If I buy a stock on Monday in CNC and sold it on Wednesday don’t u think there would not be any risk of short selling. As even if there is any auction it would be over by T+3 i.e. Thrusday and by the time my selling settlement occurred on Friday I have stocks in demat a/c. Secondly what would DP & STT charges in such case.
Mudit
Yes, the risk is reduced to almost 0 if selling on T+2 day. The only issue could be when on the auction day, instead of getting stocks, you are settled in cash.(This is possible when exchanges don’t get stock in auction). So now you have cash instead of stocks, and if you have to deliver, you are still short. But this happens very very rarely.
I had bought Dish TV, 215 Nos. @ Ra 120.00 in 2015. On 11.11.16, I bought Dish TV, 68 Nos, @ 87.50, which I may sell in the coming days if it reaches my target. However, in the holdings both the trades are put to gether showing a quantity of 283 Nos. Pls.advise, how to sell the 68 Nos. bought on 11.11.16. Because, if I sell 68 Nos., in the normal way, there are chances that 68 Nos., out of 215 Nos, will be sold, resulting in loss to me. Kindly reply.
Suresh, all stocks once they hit the demat are grouped together. IF this is for taxation purpose, FIFO (first in first out) is used to determine what you are selling. So yes, automatically what was bought first will be considered to be sold when u sell. So you can’t really do what you are asking for. You can’t select the latest 68 that you bought an say that you will sell that. (even IT deparatment won’t consider this).
Hi Sir,
I bought Ashoka Refineries Ltd. 200 shares on 4th Nov and i choose CNC. This is been short delivered i think. In current position what should i do to exit the position.
Regards,
Bibin
You should have received delivery of the stock subsequently or credit of funds to your ledger in lieu of the stocks.
I received the delivery since it is showing in my holdings but am not able to sell what might be the possible reason, is it because it is not a liquid stock. The avg value LTP and Current value all are 0.
Thanks,
Regards
Stock isn’t liquid, you’ll have to wait till you find a buyer.
Dear sir,
Many broking firms allowing to their customers to keep the BTST items for one week – provided a small amount of interest is charging after the T+2 sessions! Whether such any facilities we could expect form zerodha, if so please explain.
Thanks
Yeah, hopefully in 3 to 4 months. We are working on launching our new backoffice/reporting tool, once done we will look into this.
Hi
I had a question. If a company declares a rights issue with record date of say, 20th Dec (ex-date:19th Dec). Will I be eligible for the issue if I do the following BTST transactions:
18th Dec: Buy x shares
19th Dec (ex-date): Sell x shares
Thanks in advance
Prashant
No, to get any corporate action benefit, you need to be holding the stock in your demat account on the record date.
Hello sir…
When will u start STBT facility in zerodha….
Thanks…..
If you have stocks in your demat, you can sell today and buy back tomorrow. Without stocks in demat, you can’t do STBT with anyone.
I am NRI and have demat and trading account with other provider. When I buy some shares, sometimes I do not get delivery of those shares because of short selling by someone I think, instead I get cash back. Am I right that this is the reason for not getting delivery of the shares?
You said somewhere that at Zerodha, this situation can not happen. It is sure to get shares even when there is short delivery. Am I correct in this? Can I open account with Zerodha as NRI?
Please clarify.
Yes correct, check this post.
Hmm.. it can happen at Zerodha as well. You buy shares on an exchange, where we will not know the counterparty. If he defaults, exchange will try getting the share in auction market on 3rd day. If they are not able to get, only then it is settled in cash (highly unlikely).
Yes, you can open an account as NRI with Zerodha.
Hi Nithin,
I am current NRE account holder with Zerodha, I would like to know , Is NRE account holder has the possibilities of doing BTST? as we are prevented from Intrday…
Hi,
1. What happens if you buy shares intraday and hold it to the next day? Will it get automatically squared off at the end of the day or will it get converted to delivery?
2. What happens if you buy shares intraday but there are no buyers for the shares(in an ill-liquid stock)? Will there be a penalty? or will it become delivery?
1. If you’ve bought them under product code MIS (Intraday), they’ll automatically get squared off at the end of the day, provided there are buyers/sellers in the stock at the time of square off.
2. If you end up buying shares that hit circuits, you won’t be able to square if off for the lack of buyers. The purchase will result in a delivery and the stocks will hit your demat account. There’s no penalty for buying, you’ll only have to ensure that you have sufficient margins in the account to cover up the day’s debits, else interest would be levied for such debit balance.
Eg: Your account balance is RS.12000, you buy Stock X for Intraday on which you get 3X leverage. So effectively you buy stocks worth 36000 with only 12000 in the account. At the end of the day if you aren’t able to sell it, you’ve to take delivery of such stock. Your ledger gets debited for Rs.36000 leaving your net balance as -24000. You’ll have to bring in these funds failing which interest will get levied.
Penalty/Auction will happen only when you short sell stock and aren’t able to deliver it.
Thanks
Hello Sir,
Suppose i buy 100 share on Monday.
i sell those on Tuesday and again end of the day i bought 100 same share.
Wednesday it will still display T1:100 in holding
should i again sell this share ??
and on which day it will credit in my account?
is it after complete t+2?
Your trade of Tuesday will be considered an Intraday trade and the shares bought on Monday will continue to show under T1 holdings. These shares (bought on Monday) will get credited to your demat on Wednesday (T+2) and will start showing under Holdings on the trading platform from Thursday onwards.
Hello Venu,
Thanks for Reply
as per your answer is it possible to sell and buy same share(buy on Monday) on Wednesday??
Wednesday is T+2 day and in account will show Thursday so should i sell and buy on Wednesday?
Yes, you can. Whatever you buy and sell during the day is an Intraday trade that won’t affect your delivery position.
Hi
1. Suppose to i sell same share on Wednesday and forgot to buy again there is any problem is occur?
2. In my demat 10 share availabe of ABC company. and if i buy same 25 share and after sell 25 share as BTST that time which share is sell BTST or 10 from demat and 15 from BTST?
Hi there,
My question is whether I can sell my holding stocks on T+2 day?
as you mentioned, it is safe to sell the stock from T+3 onwards.
1. Is the risk more or less the same compared to T+1 day?
2. Will I be charged with the Demat account charge of holding shares (not be confused with STT) as technically I have sold my stocks before it hits my Demat.
1. The risk on selling on T+2 is lower than selling it on T+1.
2. Demat charges will be charged, Stock will hit your Demat account on T+2 and will get debited again if you’ve sold.
Thank you so much, I have joined Zerodha last week only and m finding everyone so helpful in this community.
Hi,
I request the margin for BTST orders as like Intraday margins.
Hello Sir…
Sir brought BANKNIFTY Dec Future yesterday under NRML, sold in the morning for a small margin, brought again and sold at the end of the day for a margin….just wanted to know if I have washed my hands off of the scrip at the end of day…again make fresh trade the next day…Thanks and Regards,
Nagaraj S
Yes, all your positions should have gotten closed on the basis of the trades you’ve said you executed.
Dear Sir,
Please tell me how to find out best pullback stocks for swing trading?
i want to learn trade scrip language please guide
Hello-
I hope someone will surely see my question. I bought a handful of stocks from BPCL & HDFC using the CNC option & the very next day they started popping up in holdings. I then Exited them the very next day from holdings & they went back under positions with negative quantities. Basically when I sold them, they should have inactivated & trading shouldn’t have allowed but I’m seeing those negative quantities as active. Why? Do I need to do something else to settle them as sold completely? Please explain.
Dear Nitin Sir
If I sell my stock BTST, when fund will appear in my account so that I can use them to buy fresh stocks?
Regards
Rishi
You can buy fresh stocks immediately.
Dear Z Team,
suppose I sold my stocks (AMO) today, putting some limit and stock didn’t meet that limit price. Will my orders will be deleted after trading hours and I have to place sell order again next day?
Regards
Rishi
Yes, all pending orders (normal and AMO) get cancelled at end of day.
Sir,
I am holding 10 share of a company in demat.If i buy 10 share as btst and want to sell only 10 share.Which share will consider ? Can i sell only T1 share ?
Whatever you sell first gets debited from your holdings. This is to avoid your sale resulting in an auction.
Hi Nithin,
In my Holdings, for some of them I see something like (T1:50) -1 or (T1:40) -1 for Qty.
And the current value of those holdings are (49)*(share value) and 39*(share value).
I don’t understand why the quantity is reduced by 1 in these holdings. Am I missing something here?
Hmm.. can you send such account specific queries directly to [email protected]
I bought 10 shares on monday.
On tuesday I found my holdings the stock was listed but the quantity was zero.
I sold the shares on tuesday but a short position was initiated instead of selling.
reasons?
hmm.. can you send such account specific queries to [email protected]. Also check this video on exit orders.
Querie :
1.If i buy with CNC and sell on same day,will it be considered as BTST and the risk of penalty will effect me ?
2 if i buy on monday with CNC and sell it on Wednesday (T2) when i ll get amount back in my trading account and when i can buy with CNC again ?
3.If i buy on monday with CNC and sell it on Wednesday (T2).how much risky it would be ?
1. No, it’s considered an Intraday trade even though you’ve bought and sold in CNC. There’s no risk of penalty.
2. You’ll get the funds immediately. You can use it to make further purchases.
3. There’s still a degree of risk. If the Exchange settles your purchase through a cash credit owing to unavailability of shares, your sell trade will result in an auction. Always best to take delivery to demat and sell.
Thank you very much…!!!
Sir,
In query no.2 If i do sell on Wednesday(on T2),i ll get funds into my trading account in Friday(T+2) as system.then how can i get funds immediately and make another purchase right away on Wednesday ?
Atin, when you buy on wednesday, exchange takes money from us on Friday morning. Hence we allow you to purchase immediately.
Got it sir…Thanks…!!!
Hi Nithin,
How many people on a particular trading day on an average face Auction Penalty? … Just so that we can get an estimate.
hmm.. that is quite a broad question. I’d say the risk of doing BTST is 1 in 10 in case of not very liquid stocks, upto 5 in 10 on penny stocks, 1 in 100 on pedigree stocks.
Pls explain this very liquid,penny and pedigree stocks ?
penny stocks are those with marketcaps less than 200 to 300 crores. Pedigree are the Nifty top 200 stocks. Very liquid are Nifty top 500 stocks where there are atleast tens of thousands of trades everyday.
Got it sir…Thanks…!!!
can i do btst by using margin?
No
Hi
Can we do BTST from Kite?
Yes
Hi Team,
Can someone please help me out to figure out the BTST stocks. what to check in the delivery volume and where to check the delivery volume and how to find out the inference out of the volume and how to take action on the same. Is there any website which will give all this information.
with regards,
Prabhu Selvaraj
Have you checked out http://zerodha.com/varsity/, not exactly on BTST, but will help you lot in learning what stocks to buy.
Hello Sir,
First I would like to thank you first for all services which Zerodha offers. Its awesome.
I wanted to understand about the brokerage charge.Let says I buy 100 shares of xyz company and hold it for a month or half year or long time so what would be the brokerage charge for the same.
Thanks,
Vikas Nawal
Vikas, we charge 0 brokerage for equity investing.
isn’t that 0.1………..because that is the charge that i see everytime on my contract notes as the brokerage charges. and i only do equity.
correct me, if i’m wrong.
The contract note shows a Rs 0.01 or 1 paise flat for every trade. The reason it shows 1 paise is because we can’t keep it as 0.
Hi.
I am quite a new member of your brokerage firm. I was actually impressed with the no brokerage chg’s for equity investing concept and opened an account. All good. But since I do not buy many shares at one given time , it may be just 1 or 2 scrips of each company at a time, based on my financial circumstances. ( small time investor). Just yesterday I opened the ledger and to my dismay I see that there are DP charges (rs.15/-) levied for every transaction. Is this applicable for the sale of even 1 or 2 shares. In which case it’s a rip off. What do you suggest OR, what other way to circumvent this anomaly? Also why do you charge Rs.50/- for changing one’s profile details. It is not the case with many other brokers.
Check this link. DP charges are per debit transactions and it is a flat charge, no way to circumvent this. This is lowest among other brokers.
Sir, You are the best.. Helping small investors like me immensely..Its just not about the brokerage.. The entire experience, the knowledge you share is just superb. I wish you all the very best and really wish from the bottom of my heart that very soon you be declared as the biggest and best brokerage house of the country.
sir,
ZERODHA….has a great future…
I have a question ..
1 ) If I buy shares of BIG TOTAL VALUE ( say worth Rs one lakh ) ONLY for cash …. in CNC.
and.. then….sell It SAME DAY at a profit.
will this be considered as an INTRA-DAY TRADE.
what willl be the brokerage …..Rs TWENTY….plus govt duties….?????
Please clarify…..
Thanking you….
Yes, intraday. 0.01% or Rs 20 whichever is lower, so for 1lk it will be only Rs 10 for buying and Rs 10 for selling.
Hi,
I bought Dlf stock at 146.50 and placed a sell limit MIS order at 148.70 , but it executed immediately
at 145.90. Now my question is why it got executed. In more information it’s showing trigger price 148.70
and avg. price as 145.90 . Does SL-M order sell gets executed above current price.
Regards,
Prasanna
You have to use limit sellingorder and mention 148.7. If you use selling SL-M (stoploss order) and put trigger as 148.7, it will get triggered immediately and selling market order will be placed.
Hi,
Thanks for immediate reply.
Regards,
Prasanna
Dear Nithin, Some of my orders automatically got cancelled and more than that what worrying me is my holdings are not displaying correctly. Ex: I bought LUPIN before some 4 days, all of a sudden today it is not listing under my holdings. I have created a support ticket 366307, but no response as of now. I am bit worried. Can you please help.
Dear Nithin, Some of my orders automatically got cancelled and more than that what worrying me is my holdings are not displaying correctly. Ex: I bought LUPIN before some 4 days, all of a sudden today it is not listing under my holdings. I have created a support ticket 366307, but no response as of now. I am bit worried. Can you please help and try to get the issue resolved at the earliest.
Sir,
In the BACK OFFICE…………Below my LISTED HOLDINGS.
There is another BOX……saying……DELAYED PAYMENT ( Interest ) Charges.
For the Whole of LAST Year the AMOUNT is TOTALLY about Rs 15000. ( Fifteen Thousand ).
So…actually wanted to know what are these charges for…….????????
At present I do ONLY CASH BUY / SELL……… and BTST.
kindly clarify on these charges….
thanking you…..
TUSHAR MODY
The interest would be for such period where your account balance was negative. I can’t see any debit of Rs.15,000 though as you’ve mentioned.
Is the information given in this article still valid?
Yep
If i sell and buy on same day say Alkyl Amine. AND also have the investment position in same stock.
Is it confirmed true that my old (investment) position will not be treated as sold.
This is very important for me for taxation purpose.
Thanks in advance. Truly appreciate the passion with which you work.
No, if you sell and buy same day, it will be treated as intraday trade. Doesn’t affect your holdings.
Hi Nithin,
Thanks for a lot for such wonderful blog and your service.
Since I am new in Zerodha and espceially, new in this market, I contacted many time your customer service and got reply within a good time limit.
I have some quarries please reply
1. If a person (say my spouse) has no income or very poor income from some temporary source (like tution etc) Zerodha and starts investment? (Assuming she got some initial investment money from some source)
2. If I buy some shares (say 10) on Monday @100 and some (say 10) @110 Wednesday, on Friday want to sell 10 (out of 20) only, is it BTST? Is there any risk like auction penalty etc? What will be avg. price then (100 or 105)?
3. I am an full time employee of other company, will be I treated as “active traders or businessman” for BTST?
4. Can I give my account details to my reliable relative so that he/she can operate my online trading, I mean is there any problem from legal point of view?
Thanking you again.
best
Please read 1. as
1. If a person (say my spouse) has no income or very poor income from some temporary source (like tution etc), Is she able to open an account in Zerodha and starts investment? (Assuming she got some initial investment money from some source)
1. Yes, she can.
2. BTST is when you buy on Monday and sell on Tuesday. If you receive delivery of the shares that you purchased on Monday, you can sell the same on Friday with no risk of auction.
3. It would depend on your trading activity. Here’s more on it to read: http://zerodha.com/varsity/chapter/classifying-your-market-activity/
4. It’s a risk you have to take, It’s similar to asking ‘Can I share my debit card and ATM Pin with my relative?’. You’ll have to do it at your own risk. There aren’t any legal implications as such since you’re sharing them voluntarily.
Thanks for your reply, but Q2 is still not clear, you did not mention anything about avg price.
Always FIFO is applied (first in first out). So if you sell on friday, what was bought on monday is adjusted for. So the buy average for the remaining 10 will be 110.
thank you for your reply
I have bought some shares yesterday, today is the ex date for the share’s dividend. The stock is showing T1. Am I eligible for dividend?
No. When you bought the stock yesterday, you would have bought it ex-dividend. Check this link.
If i bought some shares today and sold shares on the next day, Whether funds will be available immediately for me to do next trade or i have to wait for T+2 DAYS and in Zerodha can we trade in NCDEX ?
Hi Zerodha,
Can you please provide any link where i can obtain the list of the all shares which are in T2T segment and which are in Normal Trading segment for BSE and NSE. ???
Thank You.
Hey Himanshu,
You can find out all the securities trading in the T2T segment on the NSE site. Check this link for more.
Thank You zerodha.
there is something that needs to be looked upon in ‘forgot password’ section. the password and reset password was visible in URL when the page was reloaded. It shouldn’t happen. have screenshot of the same if you required.
best regards
Can you email me on [email protected]
HI Nithin,
In Dashboard Under holdings, Is it possible to show only P&L and hide total investment and current value as it avoids someone /colleagues accidentally seeing the total investment and current value which avoids unwanted attention on person’s financial status.
Thanks
in ATST, what brokerage is charged. Intraday or Delivery
Delivery Brokerage.
I have purchased some share in equity using CNC option yesterday. My target is not reached yet. When am trying to place a limit sale order for the same quantity in CNC . My order is getting repeatedly rejected. How could I sell my shares ?!!
Would help if you could let us know the rejection reason.
Sir,
I have bought shares of Suzlon .
Can I sell those in Btst ? Please reply.
Thanks .
Yes, you can.
How do we figure out in kite whether the stock is a Group A Liquid stock before buying?
The scrip group doesn’t show on Kite yet.
I loved your post. Although I just want to know that what if I buy shares On Thursday. Will be waiting for your reply
Thanks
Would you help me with the context of this question? I’m unable to relate it to the above post.
I am being charged DP charges for sales done on T2 also. I thought sells on both T1 and T2 will not attract DP but only from T3. Please help. Thanks
DP charges will apply if you sell on T2. It’ll also apply if you sell on T1 if you have the same stock in your holdings. This is to ensure that the client doesn’t suffer the risk of auction in a BTST trade. If you have previous holdings, then we debit them instead of settling the BTST trade. This ensures that you don’t face any losses because of auction.
how to do intraday in zerodha .I am new to this can you please help me by giving one example with screen shot.using zerodha kite
Can you check our youtube channel we have daily demos and video playlists. https://www.youtube.com/user/zerodhaonline
Sir,
Is there any immediate means to check whether any unpleasant consequence has occurred as a result of BTST transaction?
Your reply is highly appreciated with due thanks,
Regards,
No immediate means, you will get to know only on T+2 days whether the person you the shares short delivered or not.
i have 100 share of sbi in demat,
I sell 50 share in cnc and buy 50 share next day,
is it stbt?
do i have to pay demat charge on it, as quantity still remain same?
Me too have the same query
Yeah, since you have sold and hold position overnight, we end up debiting demat next day morning. There would be a DP charge on such trade. What you sold on Monday has to be given to exchange by wednesday, what you bought on tuesday, comes to your account only on thursday.
Hi Sir, can we sell Adlabs in BTST or On Tplus2 day? Thanks !
Hi Nitin,
Wonderful article.
I have following questions:
1. There are some stocks, even when the order is complete (bought in CNC), I am not able to sell them on the same day or the next day. I can sell only after I get the delivery. i.e. T+2. Reason? at least it should allow me to do intraday.
2. Why there is no margin on particular stock in MIS?
Thank you.
1. If stocks are in T2T category, exchanges block intraday trades on them. Typically penny stocks.
2. Again, MIS can be offered only on stocks which exchanges allow.
If I buy 10 share of reliance and sold 5 share of reliance after 10 days .
Is dp charge applicable ?
Yes Ashok, It’ll be applicable. The stocks would have been credited to your demat account and when you sell it gets debited from your the account and hence you’d incur a DP charge. If you sell it the next day, then it’s not applicable. Check this: https://tradingqna.com/t/dp-charges-and-stt-charges/5637