Hello, I mostly do BTST trade. I am a regular user of 5paisa and never used Zerodha although I have a account with Zerodha. My question is can we do BTST trade by using 100% of our fund.
For example at 5Paisa suppose I have 1lakh rupee in fund then I could only buy upto 80000 rupees as the rest 20000 rupees will used as margin for selling the stocks next day. At 5paisa we should have minimum 20% of selling value as fund. So if we have 20000 rupees in fund then we will be able to sell up to 100000 of BTST stocks.
So my question is, is it same at Zerodha or we could use up to 100% of our fund to buy a stock and then able to sell it next day.
You can use 100% of your fund to purchase the stock, the next day when you sell it, 80% of the sale proceeds will be immediately credited to your account while 20% will be blocked for the day, this will be available from next trading day onwards.
thanks bro for your great help. but I am a little bit curious about what gonna happen after September 1, 2021, when a trader is required to have 100 per cent of peak margin in her/his account? Does that mean we don’t have any margin left for purchasing new stock after sell of a BTST stock?
Even from September 2021, 80% of the sale proceeds will be credited immediately, while 20% will remain blocked for the day and will be available from the next trading day.