How Does the BTST Trading Work?

How Does the BTST Trading Work?

BTST trades or BTST stocks permit traders to take the benefits of short-term volatility. In this trade type, investors can easily purchase today and sell tomorrow. They can also sell the shares they must buy before delivering to the Demat account

In simple terms, they can sell the shares easily before making the deposits in the Demat account. Read the article to learn how BTST trading works online. 

Meaning of BTST and How the BTST works 

In delivery equity order, BTST meaning takes the T+2 days for shares you purchase for credit into the Demat account. T refers today to the Trade of shares. The sellers also get the credit in the account of T+2 days. 

During this period, if the values of the purchased shares increase, you cannot sell the shares to make profits since the orders are normal. But, if you place a cash or carry order, you can sell the shares rapidly as you see the appreciation in values to book profits. 

BTST Trades Features 

  • The facility of BTST permits you to sell the stocks before making credit into the Demat account. You can easily execute the sell order up to trading days after the purchase order. The shares are credited into your account by the third day after you can create the regular sell order.
  • The trading BTST facility is different and provided by some stockbrokers in India. 
  • You can also use the BTST facility on scripts by a stockbroker. However, you can ask the stockbroker to share the essential details so you can transact the approved BTST stocks. 
  • Many brokers do not provide BTST trading for SME companies
  • You cannot use the BTST facility in the T2T segment for stocks. It is because it is crucial to deliver the trade to trade stocks.
  • There are no special orders or complex step types to complete the BTST stocks. 

Benefits of BTST Trading 

Traders can enjoy the list of benefits of BTST trading. These are:

  • In BTST trades, you can easily sell the shares even before depositing with DP. As a result, you do not need to pay the DP charges. 
  • If you execute the intraday trade, you are not expecting any profit before the closing of the market, and you can transform the order into BTST and select to sell it on the next day.

Cons of BTST Trading

Along with the benefits, BTST trading also comes with drawbacks. Here are the drawbacks of BTST trading 

  • Various stockbrokers do not provide BTST services. Rather, it completes the CNC transactions. 
  • If your account does not have enough balance, you must pay the margin penalty on BTST trades. 
  • If the default sellers used to deliver the shares on the settlement date and failed to deliver the shares for the sell order, you have to pay the penalty. 


BTST trading needs experience and extensive practice. You have to use the proper strategy before making trades to avoid mistakes and protect from incurring losses. 

About the author


Miller Willson

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