What is Positional Trade, BTST, STBT

There are multiple types of trading in the share market and each one of the trading methods completes different goals of the trader.Such trading strategies are positional trading, buy today sell tomorrow (BTST), sell today buy tomorrow (STBT), intraday trading ans swing trading etc. Widely these trading strategies can be divided into long and short term trading strategies.

Now lets discuss on these trading strategies-

Positional Trade :

The term positional trading is important in stock market trading. A long-term trading strategy in the stock market like positional trading may be worth your time if you want to trade in the stock market.

You can use this trading strategy to hold your positions in the stock market for a longer period of time than intraday trading. You do not have to be a full-time trader or spend the entire day looking at a screen like an intraday trader.

In order to assess possible fluctuations in market prices, positional traders use technical and fundamental analysis. Investors can benefit from a few positional trading strategies.

You can Learn trading and investment with the stock market course for beginners

After knowing about what positional trading is, let’s dive into BTST and STBT.BTST stands for "Buy Today Sell Tomorrow" and STBT stands for "Sell Today Buy Tomorrow" both are playing an important role in stock marketing.

BTST :

"Buy Today Sell Tomorrow" is basically a short term trading strategy in which a trader or an investor buys some stock today and sells iy the very next day. After buying the stock, the trader sells it the next day rather than holding it for a while. BTST positions are taken on stocks projected to trade at a higher price tomorrow than they do today. Btst trading strategy is very good.

Advantages -

1. Securities are available in the portfolio for a longer period if the market is not favorable

1. Traders can minimize their loss risk by choosing fundamentally strong stocks

1. If the traders hold the securities for more than T+2 days, they become eligible for dividends and other benefits

Disadvantages -

1. Some stock brokers do not offer margin facilities, so traders are required to pay the entire amount

2. The traders may be charged extra brokerage charges the following day when they sell stock in BTST due to a small yet significant issue

STBT :

STBT can be defined as selling the stock today and again buying it tomorrow.In this only F&O shares can be taken because short selling is restricted in the stock market’s equity section. In this short position can be covered therefore a trader can only sell F&O share in STBT. STBT positions are taken in financial and operational stocks that are predicted to trade at a lower price tomorrow as compared to the price they are trading today.

My name is Anubhav and i write articles on multiple topics. Thanks for showing support.