Need help understanding T2T segment scrip

#1
Hello... I need help understanding the implication of moving a stock to the T2T (trade-to-trade) segment. Why do the stock prices fall so drastically on the announcement that a scrip is going to be moved to the t2t segment. This happens to the stock which shows good accumulation pattern and majority of the holding is with the promoters. How come there is such a strong selling pressure? Is it very risky to hold a scrip that is going to be moved to t2t segment. Kindly suggest.
 

rh6996

Well-Known Member
#2
Hello... I need help understanding the implication of moving a stock to the T2T (trade-to-trade) segment. Why do the stock prices fall so drastically on the announcement that a scrip is going to be moved to the t2t segment. This happens to the stock which shows good accumulation pattern and majority of the holding is with the promoters. How come there is such a strong selling pressure? Is it very risky to hold a scrip that is going to be moved to t2t segment. Kindly suggest.
Its is usually done to stop price manipulation.... the impact on price is also partly psychological.
Many of these stocks that are held almost 80 to 90+% by promoters are used for generating manipulated Long term TAX FREE profits!! :p
 
#3
Hello... I need help understanding the implication of moving a stock to the T2T (trade-to-trade) segment. Why do the stock prices fall so drastically on the announcement that a scrip is going to be moved to the t2t segment. This happens to the stock which shows good accumulation pattern and majority of the holding is with the promoters. How come there is such a strong selling pressure? Is it very risky to hold a scrip that is going to be moved to t2t segment. Kindly suggest.
When a scrip moves in T to T , the trading interest stops and traders get out of it. Because in T to T what you sell has to result in delivery and what you buy has to be paid for and delivery taken.

So suppose you buy 300 shares at Rs 100 and sell 250 at 110, in normal scrips your delivery is netted....so you get a delivery of 50 shares which is your net buy position. In T to T it is not netted....so you have to deliver 250 shares you sold ....on pay-in day...and pay Rs 30000 for 300 shares bought by taking delivery. And if you did that with idea of trading...your 250 sell position gets auctioned and the broker will demand Rs 30,000 from you for 300 shares bought.....who will trade in this segment ??

This is the reason the price drops once a stock goes in T to T

Smart_trade
 

soft_trader

Well-Known Member
#4
@ Smart_trade,

As I know BSE has moved stocks like SKS Micro to T2T segment.

But can we still do intraday in those stocks in NSE? Or there are restrictions in NSE as well?

Also how to check whether a stock is in T2T segment or not?
 

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