Comments

  1. Puneet

    It’s not clear about BTST. If I buy stocks worth 1 lac and as per SEBI 20% margin is needed. So, 20% is needed on T day and 100% payment is made. Next day, I sell the stocks for 1 lac rs. Now, total margin is 20% plus 20% i.e 40%. So, 60% would be released immediately?

    1. Trade Smart Online Article Author

      Hello Puneet,
      Let’s assume you have 1 lac amount in your account on T day. You bought shares worth 1lac on T day in delivery(CNC product type). Assume VAR+ELM of that stock is 20%. Since you have bought in delivery, our system required the entire amount to buy shares worth 1 lack. At the end of the T day you would have 0 balance. Since VAR+ELM is 20% (i.e 20000), you had the sufficient amount and hence no margin shortfall is reported to your account for T day. On T+1 day you want to sell the same 1lac of shares. At this moment you need to have another 20000 (VAL+ELM is required) in your account to place the sell order. In case you have another 20000 in your account then you can do BTST trade as per the example. As mentioned by you, 60% will be released only after the T+2 days settlement.

    1. Trade Smart Online Article Author

      Hello Raju,
      If you have bought the shares on T day and want to sell the same shares on T+1 day (BTST-Buy Today Sell Tomorrow) then you are required to have VAL+ELM margin of 20% in your account. To sell the delivery shares you are not required to maintain VAR+ELM margin. Please note VAR+ELM margin differs from stock to stock.

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