Simple question on swing trading

I am mostly a buy and hold investor but I have started to learn about swing trading and TA recently.


I am confused about one thing in swing trading.

Can we buy a share of e.g Reliance on Monday and sell that share on Tuesday or Wednesday.


If I am not mistaken its takes t+3 days for the share to reach your demat account. So if you sell the share on wednesday, would nse/bse fine you because you dont have the share in your account but still you sold it.


I have searched the forums for this question but did not get any simple answer.

If you don't want to wait until delivery, you can go for Buy today sell tomorrow popularly abbreviated as BTST. Just ask your broker if he provides this facility. Remember that there are some risks involved like failed delivery, etc. Ask your broker about this too without fail.

As bunny said you can use BTST or if you are with ICICI DIRECT (don't know about others) you can use their margin service. IN that case you will have to pay only 20% upfront rest on T+2 if you take delivery or you can square it off before 3.30 PM on T+2 day. Say if you buy Reliance on MOnday then you need only 20% of total cost rest you will have to pay on T+2 i.e Wednesday if you decide to take delivery other option could be to square off your position as mentioned above.

Be careful. Happy Investing/Trading

Cheers

Thanks bunny and rajeabc.

I searched the forums on btst and got lot of info. Thanks for pointing me in the right direction.

Will confirm with my broker(sharekhan) if they provide btst.

Sharekhan provides BTST, but for selected stocks I think. May be you can get this list by logging into your web-based account.

I called Sharekhan, they said that all stocks are supported except for some stocks which are settled on trade-to-trade basis.

If you are interested in buy today sell tomorrow then you can go for the futures....they are just like stocks but little diffferent.....check it out

Futures A financial contract obligating the buyer to purchase an asset (or the seller to sell an asset), such as a physical commodity or a financial instrument, at a predetermined future date and price. Some futures contracts may call for physical delivery of the asset, while others are settled in cash. Futures can be used either to hedge or to speculate on the price movement of the underlying asset. For example, a producer of corn could use futures to lock in a certain price and reduce risk (hedge). On the other hand, anybody could speculate on the price movement of corn by going long or short using futures. The primary difference between options and futures is that
options give the holder the right to buy or sell the underlying asset at expiration, while the holder of a futures contract is obligated to fulfil the terms of his/her contract.


future is no different then the equity....the only noticable difference is that it has a particular lot that you can take with expiry date on last thursday of the month. you can both buy or sell the future. also u have to pay only some percentage of the money(as directed by SEBI) like 20% 21% etc. the brokerage charged on futures is also less, the reason being that the future contract is just virtual settlement of shares or we can say that only money is transfered but the shares are not delivered. you can btst it or just intraday. the future you buy can be taken of any date like last thursday of this month, next month or coming month. the volatility of future of this month is the highest and decreases for the next month.

In delivery trading, shares shows on demat after T+3 days. But you can sell this stock purchase day itself or next 2 days. In net position " square off " option gives this opportunity to sell stocks purshase day itself. ANST report means acquire now and sell tomorrow with this option you can sell shares. These two options are give to clients by Standard chartered capital markets ltd to sudden profit booking. After 3 days you can sell shares at anytime. Demat means dematerialisation of shares in delivery form. BTST & ANST are same option.

In delivery trading, shares shows on demat after T+3 days. But you can sell this stock purchase day itself or next 2 days. In net position " square off " option gives this opportunity to sell stocks purshase day itself. ANST report means acquire now and sell tomorrow with this option you can sell shares. These two options are give to clients by Standard chartered capital markets ltd to sudden profit booking. After 3 days you can sell shares at anytime. Demat means dematerialisation of shares in delivery form. BTST & ANST are same option.

I am assuming that this margin facility comes at a cost. Is it so ? Is it 16% for sharekhan and say 18% for IB.