What is a Trade-to-Trade (T2T) stock?
Trade-to-Trade (T2T) stocks are securities where only delivery-based trading is permitted. In this segment, intraday trading is not allowed, which means you must either take delivery when you buy or give delivery when you sell. Buying and selling the same stock on the same day is strictly prohibited.
What is the disaster recovery site of NSE?
A disaster recovery site allows the market to continue to function in case of an emergency such as a security breach. The National Stock Exchange (NSE) will conduct a special live trading session involving an intraday switchover to a disaster recovery (DR) site.
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What is BTST (Buy Today and Sell Tomorrow) and how does it work?
BTST stands for Buy Today, Sell Tomorrow. It allows investors to sell shares the day after buying them, even before the shares are credited to their demat account. India follows a T+1 settlement cycle, meaning shares bought on Monday (T day) are delivered on Tuesday (T+1). However, with BTST, you can sell those shares on Tuesday itself, even before receiving them in your demat account. For example:
A client has ₹500 in their Jainam trading account. On Monday, the client buys 1 share of XYZ Ltd. at ₹500 and on Tuesday, they sell that 1 share at ₹520.
Although the share hasn’t yet been delivered, Jainam allocates it to the client's upcoming delivery obligation and the sale transaction will be settled on Wednesday. The sale proceeds are credited to the account on Wednesday. RELATED FACTS: - As per SEBI rules, credit from BTST (T1) sales is not available for use on the same day.
- BTST involves a risk of short delivery. If the shares are not delivered (due to seller default or exchange issues), the client may face penalties or auction charges.
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