What is Trade-to-Trade Segment for Stocks | What is TT Segment in Trading
- TT is a Trade to Trade segment on Bombay Stock Exchange, stocks which are categorized in TT segment by the exchange cannot be traded for intraday Trading by the investor that means when you buy you have to take delivery and make payment and if you sell then you are oblige to give the delivery.
- In case if you already have a certain portion as delivery then you can do intraday on TT segment to the extent of the qty available in delivery. However your broker may charge brokerage as per delivery on both your buy and sell transaction of the Day. As stated earlier, when a stock is shifted to the T2T segment only delivery trades are permitted on the stock. You cannot square up your position intraday; so, every purchase has to result in taking delivery and every sale has to result in giving delivery of shares. Here are five interesting things about T2T stocks that matter to you.
- When you buy a T2T stock, ensure that you have the funds to take 100% delivery of the stock. Similarly, when you sell a T2T stock, check that you already have delivery in your Demat account. Once you sell the shares, you cannot buy them back as intraday square-off is not permitted in T2T stocks.
- Inability to give delivery on the T+2 day means auction losses for the trader.
The broker with whom you trade normally has an in-built warning system in case of T2T stocks. However, the onus of checking for the T2T status of stocks rests on the trader, and hence, it is best to double-check funds and delivery before getting into T2T stocks.
In BTST or STBT, you essentially buy today and sell tomorrow or you sell today and buy tomorrow. In both the cases, you are taking an overnight risk on the stock.
- In case of T2T because all trades have to essentially result in delivery, there is no scope for BTST or STBT trades.
- T2T stocks are distinct from Z-group stocks. While both these stocks are only-delivery based, Z group stocks have a larger fundamental problem as they have not complied with the listing agreement. T2T stocks are better than Z group stocks.
When a stock is shifted to the T2T segment, the circuit filters are pegged in the range of ±5%. This ensures that the volatility in these stocks is automatically curbed up to a level. This is the core purpose behind shifting to the T2T segment.
- Trade-to-trade is a segment where shares can be traded only for compulsory delivery basis. It means trade-to-trade shares cannot be traded intraday. Each share purchased/sold which are parts of this segment need to be taken delivery by paying full amount.25-
- Trade-to-trade is a segment where shares can be traded only for compulsory delivery basis. It means trade-to-trade shares cannot be traded intraday. Each share purchased/sold which are parts of this segment need to be taken delivery by paying full amount.
- The settlement of scrips are available in this segment is done on a trade to trade basis and no netting off is allowed for the day. “In the ‘T2T’ segment, no speculative/intraday trading is allowed.