BTST - Risk reduction - interesting discussion

General
1

Kindly guide on how to reduce the chance of getting penalised for BTST trades.

Will selling shares in small quantities help us in reducing probability of getting fine ?

List us all the beneficial tricks to reduce the probability.
@nithin

2

With BTST, the risk is of short delivery, as you’ll be selling the shares which aren’t in your Demat account yet. This article explains this in detail:

Also, there are some stocks where additional margin is levied by the exchange, for such stocks, if you don’t have sufficient funds, penalty can be applicable. More details here

3

@ShubhS9 I got it shubh. I was trying to ask how to reduce the probability of getting penalised from BTST Transactions.

Any tricks and scientific deployments? Like placing order from 3 - 3.30 pm?

4

bro… if you want to do btst… you need to embrace the risk of short delivery… it is inherent part of doing btst… this happens rarely but you need to be ready for this… there is no alternative… have been through this and there is no way around as i said before it happens rarely but it is inherent part of btst and you should embrace it.

also… for btst stick with stocks that trade in f&o… these are most liquid stocks and chance of short delivery are very rare…

2 Likes
5

This is all true about the risk and nature of BTST, but has anyone calculated in numbers how much the risk is? It would be great to have some experienced folks who do BTST regularly share some numbers based on the trades they make. They might not have a pattern, but it would be good to know! Or if someone has some numbers they picked up from somewhere else? :slightly_smiling_face:

Thanks!