Does Zerodha allow BTST?

Yes, Zerodha allows BTST (Buy Today Sell Tomorrow) orders. It is a facility wherein you can buy a stock today and sell it tomorrow (before you get the delivery of the shares). This allows you to gain from a short-term price increase in stock.

To do BTST trade, you have to buy a stock using CNC product type (delivery trade) and the next day sell the stock using the CNC product type.

Note:

• Zerodha doesn't allow BTST trades in T2T stocks, stocks under GSM (Graded surveillance measures) or ASM (Additional surveillance measures).
• There is a small risk of Short Delivery in the BTST order. In case the seller from the first trade doesn't deliver the shares on time (T+2 days), you may not be able to deliver the shares to the buyer of 2^nd In this case, you will face the risk of auction penalty which can be up to 20% of the value of stock short delivered.

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