BTST Technique in Option Trading

Hi All,

Please tell me how BTST works. ? I want to know how can I able to use it in Option Trading? Specially how much margin will use and how much tax have to pay for this ?

Thanks in advance.

There is no special technique for btst in option . just buy or sell option today and cover it next day . you have to trade in NRML and there is no leverage given for option so what is the option premium you have to pay it . and other charges taxes brokarge etc what are applicable.
Note- it is always better to trade option in NRML than MIS because you have to use same margin for both but your position is safe with NRML.

Thanks Sunil for Reply. So as per my understanding , Please let me know that I am correct or not.
Suppose I want to buy
in BTST, then I have to buy in NRML mode
So as per this above image, total margin will be used as 75*129 = 9675 .
As I bought in NRML, so I can leave it for overnight without pay any extra margin and TAX will be also same.

Am I correct or not ?

Correct but you have to pay brokerage and taxes as applicable…

Ok so brokrage will be as normal applied as daily Option intraday or something extra…

Dear Sir, Please elaborate some more… I also want to trade options BTST ( Buy today sell tomorrow or vice versa)

My question is that can i do BTST in options trading ??? or there any penalty for btst in options …?? Waiting for answer

There are no penalties for trading options.

  1. BTST - You are buying the option first so need to pay the premium upfront.
  2. STBT - You are selling options so need to have margin which is significantly higher than buying options.

It’s upto you to buyback/sell tomorrow. There is no rule that you need to sell or buyback the next day

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Thanks for Clarification Sir.