What is the full form of BTST in Share Market?

The BTST Full Form in Share Market is Buy Today Sell Tomorrow. The share market thrives on a constant dance of buying and selling, with investors seeking to capitalize on price movements. While some strategies focus on long-term holdings, others cater to those seeking quicker gains. Buy Today Sell Tomorrow (BTST), often abbreviated as BTST, is a short-term trading strategy that exploits potential price fluctuations within a single trading day and the next.

BTST Deals

The BTST strategy is to buy company shares on T Day and sell them on T+1 Day.  Instead of crediting investors’ Demat accounts after T+2 days, BTST employs intraday exposure. Before receiving T Day shares, the investor may sell them.

BTS trading mechanics

Investors buy the needed shares on T Day. Broker blocks investor’s account money for transaction. Investors’ Demat accounts don’t reflect bought shares immediately. Intraday exposure brokers hold them. Sell orders may benefit the investor if the stock price rises on T+1 Day. Selling brokers employ intraday exposure. The investor earns selling proceeds and removes intraday risk.

BTST Share Market Importance

Market liquidity may increase with BTST trading. BTST transactions boost market efficiency by increasing buying and selling volume. Short-term BTST pricing adjustments may dynamically alter price discovery. Market sentiment and stock value may be affected by collective buying and selling.

Advantages of BTST

BTST investors might benefit from 24-hour price volatility. The investor doesn’t need settlement money to sell shares since they’re not Demat-delivered. Capital-constrained persons may profit. As mentioned, BTST may hedge long-term holdings.