Trade to Trade settlement is a segment where shares can be traded only for compulsory delivery basis. It means Trade to Trade shares cannot be traded on intraday. Each share purchased/sold which are parts of this segment need to be taken delivery by paying full amount. The settlement of scrips available in this segment is done on a trade for trade basis and no netting off is allowed for the day.

For example:- In Normal rolling settlement, one can trade stocks intraday (One can buy and sell a security on the same day).

Suppose you buy 1,000 shares of SUZLON at Rs.25 per share and sold these 1,000 shares for Rs.30 per on the same day (before the close of trading). You have gained Rs.5 per share (less brokerage/Other Expenses). This is the amount you will receive from your broker in the normal rolling settlement system.

But, if the same stock is under trade-for-trade segment, you will have to pay Rs.25,000 to take delivery of the shares you bought. Similarly, the quantity you have sold will have to be presented for delivery in Demat A/C. The Trade-for-Trade segment considers each transaction individually.

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Comments

    1. Trade Smart Online Article Author

      Hello Ravi,
      If you want to sell a fresh position of t2t stock then it is not allowed from exchange. This means no short selling allowed. You can only sell t2t shares if you have holdings available with you. Just for your information, in t2t stocks BTST (Buy today sell tomorrow) is also not available. You may also check our knowledge base article for more information.

    1. Trade Smart Online Article Author

      Hello Rohit,
      If you bought shares on 12th Sept. then it would get settled on 14th Sept. You may sell the shares on 15th. In case you want to sell on 14th itself then you are required to take the confirmation from customer support whether you have received the shares on 14th. However, if the shares are not delivered to your demat account from the exchange then you would get SMS of no. of shares not received.

    1. Trade Smart Online Article Author

      Hello Rajyaabhishek,
      T2T shares get settled on T+2 days. You can sell the shares once you receive the delivery shares on T+2 days from exchange. Intraday is not allowed for T2T shares because such stocks do not have much volatility.

  1. V Balasubramanian

    I am holding tcs elect since 9th. Till 10th nov i was doing day trading. Today on 13th it is shown as t2t. Should hold or it is risk. When i can sell it.

    1. Trade Smart Online Article Author

      Hello Balasubramanian,
      You can sell the shares any time if you have the delivery from exchange. Regarding the risk associated with t2t stocks, kindly refer financial sites like money control or NSE/BSE to get more insight about the credibility of such stocks.

    1. Trade Smart Online Article Author

      Hello Vishal,
      Intraday is not allowed in Trade to trade stocks by exchange. You can sell T2T stocks if you have the delivery in your demat account.

  2. Bipin kumar

    He’ll I am bipin kumar holding tv’s electronics 140 share from 8 nov 17 but now it is on LC how to sell and when it will come out from t2t
    And how long any stock kept in t2t

    1. Trade Smart Online Article Author

      Hello Bipin,
      If the stocks are in circuit then you are required to wait till there is some liquidity in the market. TVS Electronics is in circuit limit in EQ series. The trading is going on in BE series. You are required to check in NSE website if the grade is changed from EQ to BE. If so, you can try selling your shares in BE if you have the delivery shares with you. If you get any error while selling in BE series, you may contact your broker.

    1. Trade Smart Online Article Author

      Sanwaria stock is trading in NSE BE series. The same also can be checked in your holdings. Depending upon the performance of the company exchange will decide to move out of t2t. Brokers do not have idea on when the stock will move out of t2t.

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