BTST Stocks for the Day
11 Jul, 2025 | 16:13
Buy Today, Sell Tomorrow (BTST) trading is a method that lets traders sell stocks before they are delivered to their Demat account. This approach skips the standard settlement cycle and offers benefits like improved liquidity, lower costs, and chances to profit from short-term price changes.
At 5paisa, our analysts provide trading ideas tailored to different strategies. Each morning, we offer the best momentum stocks to buy today, while in the last trading hour, we share actionable BTST (Buy Today, Sell Tomorrow) ideas to help you make informed trading decisions.
1. IEX
2. SWANENERGY
3. KFINTECH
What is BTST Trading?
BTST, or Buy Today, Sell Tomorrow, allows traders to sell shares before they are credited to their Demat account. In the T+2 settlement system, stocks bought on a particular day are credited two trading days later. BTST enables traders to sell these shares the next day, leveraging short-term price movements without waiting for settlement.
How Does BTST Work?
To understand BTST better, let’s consider an example:
● Buying: You purchase 5 shares of L&T on Monday at ₹4,000 each, totaling ₹20,000.
● Selling: On Tuesday, before the shares are credited to your Demat account, you sell them at ₹4,100 each, earning ₹20,500 in total. This gives you a profit of ₹500 within a day.
● Settlement: Although the shares are scheduled to be delivered to your account on Wednesday as per the T+2 settlement cycle, your broker facilitates their delivery when you sell them on Tuesday. Additionally, 80% of the sale proceeds can be reinvested immediately, while the remaining amount becomes available by Thursday after the settlement is complete.
This process allows you to take advantage of short-term price movements without waiting for the shares to be credited to your account.
Invest in Indian Markets and Unlock Future Potential With 5paisa!Is There a Risk to Executing BTST Trades?
BTST trades carry certain risks that traders should be aware of. One of the primary risks is short delivery, where the seller you purchased the shares from fails to deliver them by the settlement date. In such cases, the exchange conducts an auction to acquire the shares, and you may need to pay a short delivery penalty. This penalty depends on price movement and liquidity, and it can range from 1-2% to as high as 20% of the transaction value. Additionally, BTST is susceptible to market volatility, and unexpected price drops can lead to losses. Traders must carefully evaluate these risks before engaging in BTST trading.
What are the Advantages of BTST Trading?
BTST trading offers several benefits:
● It allows you to profit from anticipated price increases without waiting for Demat settlement.
● It provides two days to finalize agreements before shares are credited.
● No Demat transaction fees are charged, as shares are not delivered to the Demat account.
● You may pay lower transaction fees compared to traditional trades.
● It enables reinvestment of up to 80% of sale proceeds immediately.
● It offers an extra day to capitalize on market movements compared to intraday trading.
BTST trading has garnered attention for its potential to generate profits quickly while offering many benefits. However, like any trading strategy, it comes with its own set of risks. Traders, especially those new to the market, should take time to understand stock movements and market trends before engaging in BTST trading. Seeking guidance from experienced professionals or conducting thorough research can help mitigate risks and maximize the chances of success in this dynamic trading approach.
FAQs
Find answers to frequently asked questions to help you understand our platform better.
BTST typically refers to buying stocks today and selling them the next trading day. However, if you choose to sell BTST stocks on the same day, it will be considered intraday trading.
Highly liquid stocks with strong price momentum and substantial trading volume are best suited for BTST trades. Traders often look for breakout patterns or positive news triggers to select such stocks.
The best time to acquire BTST stocks is half to an hour before the market closes and then selling it the next day at the earliest.
While both strategies aim for short-term gains, intraday trading involves buying and selling stocks within the same trading day, requiring positions to be squared off before the market closes. In contrast, BTST allows you to carry the position overnight and sell the next day.
To perform a BTST trade on 5paisa:
Buy the Stock: Log in to your 5paisa account, search for the desired stock, select the 'Delivery' product type, enter the quantity, and place the buy order.
Sell the Next Day: On the following trading day, go to your portfolio, select the stock, choose the 'Delivery' product type again, enter the quantity, and place the sell order.
The following are some tested BTST trading strategies.
1. Establish a stop-loss.
2. Invest ahead of a Major Event.
3. Use the 15-minute candle day analysis.
4. Invest in high-liquidity stocks.
5. Book profits after attaining goals.
No, a standard 5paisa trading and Demat account is sufficient to execute BTST trades. Ensure you have adequate funds and understand the risks involved before engaging in BTST trading.
BTST trades incur standard brokerage charges applicable to delivery trades.
BTST trading is suitable for traders with a moderate-to-high risk appetite who want to capitalize on short-term market momentum without holding positions for long periods. It's especially useful for those who can actively monitor market trends and news.
No, BTST trading may not be permitted for all stocks, particularly those under trade-to-trade (T2T) segments or with low liquidity. Some exchanges or brokers may also restrict certain scrips from BTST eligibility due to risk concerns.