For placing a BTST order via Zerodha Kite, the process is quite simple. You can follow the same steps as to how you might place an order on Zerodha Kite. However, when you buy or purchase a stock, you will have to select the “CNC product type” option in the buy order popup.
BTST stands for buy today and sell tomorrow, which is a growing trend amongst traders. It’s a format in which users can trade shares and stocks before they are even credited to your Demat account. In Zerodha, this feature is known as the CNC process. The entire trade cycle revolves around the stocks being purchased by the user, and within 2-3 days, it gets credited to your Demat account.
With a BTST order, users can directly sell the stock purchased without waiting for it to be credited. Zerodha allows such trading only on a few platforms such as stocks, GSM (graded surveillance measures) Stocks, and ASM (additional surveillance measures) stocks. Those looking to place a BTST order on Zerodha Kite can do so by following the steps given.
Do keep in mind that there are no margins offered by Zerodha on such orders. Moreover, the auto-squaring off feature doesn’t imply such orders, and users should have a full margin trading account to avail CNC buying order. Fortunately, the entire BTST order is free of charge with no brokerage fee. But there is a 0.1% charge levied on BTST as STT (securities transaction tax).
BTST orders to be placed on Zerodha Kite are relatively straightforward, where changing a single parameter in the buy order can fetch you the service. But it involves risks as the shares purchased are directly sold without its being credited to your Demat account.
Your total reliance is associated with the seller for their delivery of shares. If they fail to do so, then you could be charged with a penalty of 20% of the delivery value. Understand the risks associated and then opt for a BTST order type on Zerodha Kite.