What is the limitation to do STBT?

General
1

Hi traders,
I have many small doubts please help me to sort this out.

Does Zerodha support STBT in Equity and Commodity?If yes ,then can we do in cash and futures?
Can we put SL in these orders?

2

STBT is not allowed in Equity cash.

But with Equity futures and commodity futures, you can do STBT. You will require a normal margin amount for this and you can carry-forward the futures. No limitations here.

Yes, once you take a sell position in futures, you can place an SL order for it.

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3

@Srinivas Thanks for the answer.

“STBT is not allowed in Equity cash”

Is BTST allowed in cash and future right(Equity future and Commodity future)?

Say I have taken STBT, what if I don’t close on next day? Does it Square off automatically?and penalty will be there?Is it same in BTST also?

4

Yes, BTST is allowed in cash, equity futures and commodity futures. You have to note that to carry an equity future or commodity future overnight, whether it is for BTST or till expiry, you need to pay up the entire normal margin while taking the position.

For futures STBT, you still need to pay entire normal margin while entering the position. So you can carry this position until expiry, you don’t have to close it the next day if you don’t want to. Same for BTST also, can carry till expiry if you want to.

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5

Is the shorting order is only for intraday?
If I want to go for shorting for a 3-4 days is it possible?

6

Quoting this answer
STBT is not allowed in Equity cash.

But with Equity futures and commodity futures, you can do STBT. You will require a normal margin amount for this and you can carry-forward the futures. No limitations here.

7

I think what you are asking is carrying the MIS position to the next day. That is not possible in zerodha and perhaps any of the discount brokers.

8

@priya_alami ; CASH SEGMENT :As i understand you can do BTST in all scrips all group shares . STBT can also be done in all scrips all group shares provided you have ready delivery of shares in your demat . YES with the usual market risk of short delivery by selling broker , which is there in all such type of trade.