How To Do BTST In Zerodha Kite?

Check All Frequently Asked Questions

Want to know about btst in Zerodha and how to do BTST in Zerodha Kite?

Then you are at the right page.

Here is the complete detail of the process, charges and margin.

Before diving in here is the brief detail of BTST.

Buy Today, Sell Tomorrow abbreviated as “BTST” is a form of trading wherein investors can sell the shares before waiting for them to get credited in their Demat Account. Many people do not know if Zerodha allows it.

The answer is yes, this facility is available on Zerodha which is among India’s best discount brokers. If you are not sure how to do BTST in Zerodha Kite, or just want to know about BTST, this blog will resolve it. Stay tuned.

BTST for Zerodha is available as CNC (cash and carry) which indicated delivery trades. This is because you hold BTST orders for more than a day as opposed to MIS (intraday trading).

(Know what is CNC and MIS in Zerodha

BTST In Zerodha

In normal conditions, when you buy a stock in Zerodha, you sell it only when the shares are credited to your Zerodha Demat account. This whole procedure takes 2 trading days and the shares are credited to your Zerodha Account somewhere on the third day. This is called a trade cycle.

As opposed to this scenario, in Zerodha BTST, you can buy and sell before getting delivery (waiting for the shares to get credited to your demat account). 

Zerodha BTST stocks have become quite common these days and are well-suited for traders who buy a stock for delivery and wish to sell it on the next day.

Note that for Zerodha BTST trading, you must choose “CNC” as your product type while purchasing. Also, you can do so only if you have a Zerodha Free Demat Account (for taking delivery of stocks).

In Zerodha BTST online trading, when you sell the order the next day (before even getting the delivery), the “product type” of your “sell order” should again be specified as CNC.

Also, at Zerodha, you can not do BTST trades on the following:

  • Trade to trade stocks
  • GSM (Graded surveillance measures)  stocks
  • ASM (Additional surveillance measures) stocks

BTST In Zerodha Kite

Zerodha Kite is the firm’s advanced trading platform that allows it’s clients to trade, monitor stocks as well as do charting. It is available in both – web as well as mobile versions to serve the needs of different customers. This platform also has a next-generation feature called the Zerodha Kite Connect that allows clients to customize their trading platform through programming and coding.

The process of placing BTST orders in Zerodha Kite is the same as that of a regular Zerodha order. Just keep in mind that you must select “CNC” as the product type while buying as well as selling.

Follow these steps to do BTST In Zerodha Kite:

  • First, log in to the Kite using your Zerodha Login id and password 
  • Now select a stock from your watchlist for BTST
  • You may also add a new stock to your watchlist and then use that for BTST trading
  • Select the stock and click on “buy”
  • A “buy order” window will appear
  • Here, select CNC as the product type and fill in your desired price and quantity
  • Once you have entered all the order-related data, click on “buy”
  • Your order is placed and you can view it in the “order book”
  • Now, on the next trading day, place a “sell” order on that same stock
  • Do not forget to specify CNC as your product type in this order as well
  • Enter your desired price and quantity and click on “sell”

Zerodha BTST Margin

BTST With Zerodha is a part of the delivery trade with CNC as the product type. As far as Zerodha BTST leverage is concerned, the firm does not provide any margin on CNC orders.

Besides, in this product type, your positions are not auto squared off (at Zerodha Square Off Time). Besides, your trading account must have a full margin for buying in CNC. 


Zerodha BTST Charges

BTST on Zerodha is absolutely free. Yes, you heard it right! Zerodha does not charge any brokerage on BTST trades.

Besides, the STT (Securities Transaction Tax) on Buy Today, Sell Tomorrow trades in Zerodha is 0.1% of the transaction value. 


Conclusion

BTST trades involve certain risks because you sell shares that are not yet credited to your Demat account

In simple words, you rely on the seller from whom the shares have been purchased. In case of any default in the delivery on the seller’s end, the risk of auction penalty is very likely. If this happens, you may have to pay an auction penalty whose value can be up to 20% of the value of the delivery.

Therefore, it is essential to research well before carrying out the actual trade. We hope this article helped you in understanding Zerodha BTST and the way of placing such orders.

Happy trading!


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