How to Place BTST Orders on Zerodha: A Comprehensive Guide
If you're looking to engage in BTST (Buy Today Sell Tomorrow) trading, also known as STBT (Sell Today Buy Tomorrow) trading, through the Indian stock market broker Zerodha, this guide will walk you through the steps to place these types of orders.
Steps to Order BTST Trading on Zerodha
Briefly, BTST trading allows you to buy shares today and sell them the next day. This can be a great way to manage risk and profit from short-term market movements. Here's how to place a BTST order on Zerodha:
1. Log in to Your Account
Open the Zerodha Kite app or website.
Log in using your credentials.
2. Select the Stock
Use the search bar to find the stock you want to buy.
3. Place a Buy Order
Click on the stock to open its details.
Click on the Cash and Carry product type for BTST trading. This is crucial because BTST requires you to hold the shares in your Demat account by the end of the day.
4. Confirm the Order
Review the details of your order.
Click on the Buy button to place your order.
sell the Stock
After the close of the trading day:
Log in to your Zerodha account.
Go to your holdings or the stocks section.
Find the stock you bought the previous day.
Click on the CNC (Cash and Carry) button to sell the stock.
Important Notes
Delivery Period
Ensure you sell the shares the next trading day to maintain the BTST strategy's integrity.
Brokerage and Charges
Be aware of the brokerage fees and any other charges that may apply to BTST trades. Currently, Zerodha charges no brokerage fee for BTST orders but levies a 0.1% charge as STT (Securities Transaction Tax).
Market Risks
Like any trading strategy, BTST carries risks due to market volatility and other unpredictable factors.
Conclusion
By following these steps, you can effectively use BTST trades on Zerodha. Always keep an eye on market trends and news that may impact stock prices before making your trades. Zerodha is highly recommended for beginners due to its user-friendly interface and wide range of services.