T+5 Trading
Up to
2X Leverage
Invest in More Opportunities Beyond MTF Stocks
Explore Greater Flexibility with T+5 Facility
Many stocks fall outside the MTF universe. Traditionally, investors would need to pay the full amount upfront to take a position. With T+5, eligible stocks can be purchased using leverage, allowing you to participate in opportunities that may otherwise require higher capital.
Intraday vs MTF vs T+5
Intraday
T+5
MTF
How T+5 Works with 5paisa
- 01. Choose a stock
Select any stock from over 2,500 options available for your investment portfolio.
- 02. Select T+5 on the order form
Select T+5 from the available options on the order form.
- 03. Hold positions up to 5 trading days
Hold the position up to 5 trading days with up to 2X leverage.
- 04. Exit the position same day or settle the balance amount within 5 days.
If you don't exit or settle within T+5, 5paisa will square-off your position.
Is T+5 Right for You?
Active Market Participants
Seeking flexibility beyond intraday trading.
Investors Tracking Non-MTF Stocks
Interested in stocks that may not be available under traditional MTF.
Opportunity Traders
Looking to participate in short-term opportunities with leverage.
Capital-Conscious Traders
Need more buying power without using all your capital
What is T+5 Trading?
T+5 trading is a pay-later facility that allows investors to purchase eligible stocks and settle the transaction within a defined T+5 settlement period. Instead of paying the entire value upfront, investors can access leverage and manage positions over multiple trading sessions.
The T+5 model creates a middle ground between intraday trading and Margin Trading Facility (MTF), offering both flexibility and additional time to manage positions.
Understanding T+5 Orders and T+5 Settlement
A T+5 order is a stock purchase executed using the T+5 facility. Once the order is placed, the investor receives additional time before full settlement is required. The T+5 settlement period allows positions to be held for up to five trading days under CUSPA, giving traders flexibility to respond to market movements while managing capital more efficiently.
T+5 Margin and Pay Later Trading
T+5 margin enables investors to take positions using leverage rather than deploying the full order value upfront. This pay-later approach can help improve capital utilisation while providing exposure to a broader universe of stocks. Investors should understand applicable charges, risks, and settlement obligations before using leverage-based products.
Frequently Asked Questions
A T+5 order is an order placed under the T+5 facility, allowing the investor to purchase eligible stocks with a deferred settlement.
T+5 settlement refers to the period available for completing settlement obligations after a T+5 oder is executed.
Intraday trades must be squared off on the same trading day, whereas T+5 positions can be carried forward for up to five trading days.
MTF focuses on financing approved MTF stocks for longer holding periods, while T+5 extends leverage to eligible stocks outside the MTF universe with a shorter holding window. 5paisa currently offers 1500+ stocks for MTF and 2500+ stocks for T+5 facility.
T+5 margin refers to the leverage provided under the T+5 facility, enabling investors to take positions with lower upfront capital.
T+5 is designed for investors and traders seeking additional flexibility, leverage, and access to stocks that may not be covered under MTF.
No. Eligibility is determined based on predefined risk and product criteria. The list of eligible stocks may change periodically.
Yes, you can square off your T+5 position before the settlement period ends. You are not required to hold the position for the full 5 trading days.
If you do not exit your position or settle the outstanding amount within the T+5 period, your position will be subject to forced square-off by 5paisa. Additional charges or penalties may apply. It is advisable to monitor your positions and settle obligations before the T+5 window closes.
Never Miss Opportunities!
Access eligible stocks with up to 2X leverage and the flexibility of T+5 settlement.
Access eligible stocks with up to 2X leverage and the flexibility of T+5 settlement.