3 Crucial Things To Know About T2T Stocks | Paytm Money Blog (2024)

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3 Crucial Things To Know About T2T Stocks | Paytm Money Blog? ›

T2T means only delivery based settlement. (intraday is not allowed by design) You buy stock by paying for that trade. In case one buys and sells the stock on the same day (intraday) then Exchange will treat those transactions as different trades altogether : Stock bought – will become a part of delivery.

T2T means only delivery based settlement. (intraday is not allowed by design) You buy stock by paying for that trade. In case one buys and sells the stock on the same day (intraday) then Exchange will treat those transactions as different trades altogether : Stock bought – will become a part of delivery.

Both the premier stock exchanges — the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE) — publish the list of stocks available under the T2T segment on their official website. The NSE classifies T2T stocks under the 'BE' series, whereas the BSE classifies them under Group T.

T2T stocks are better than Z group stocks. When a stock is shifted to the T2T segment in the stock market app, 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.

Newly listed stocks are traded under T2T for first 10 days from listing date. These shares will show in your demat account only after 2-3 days. T2T stocks are placed in a separate group/series - BE Series on the NSE and T Group on the BSE. Institutions usually do not hold T2T stocks.

Rules to Trade in T2T Stock

Every trade in T2T stocks must result in the actual delivery of stocks. This means you can't sell the stock on the same day you buy it. Intraday trading, which involves buying and selling stocks on the same day, is not allowed with T2T stocks.

- There are no buyers/sellers for these stocks (low liquidity). In this case, you can still place a limit order, but market orders will be disabled. - You're trying to sell a trade-to-trade (T2T) stock before delivery. T2T stocks can be sold after delivery only, i.e., 1 working days after an order is placed (T+1 days).

To buy a T2T stock, you must pay the entire amount and take the trade on delivery. To sell the stock, you must ensure that you have the stock's delivery in your demat account. If you don't, you cannot sell the stock. After selling the share, this segment does not allow intraday or netting off.

The stock you are trying to sell is a trade to trade (T2T) stock. You can sell it only after it has been delivered to your demat account. If you have pledged your shares (to get extra margin against your shares), then you will not be able to sell these shares until they are unpledged.

If a trade-to-trade (T2T) stock is bought, and the client tries to sell the stocks on the same day, the order will be rejected. However, it can be sold on the next trading day, i.e. T+1 day.

Can a stock come out of T2T and be put in normal trade again? ›

Once you have sold the shares you cannot even buy it back as intraday is not permitted in these T2T stocks. If you are unable to give delivery on T+2 date then it goes into auction and losses could be quite large, apart from penalties.

If you can't find a reasonable price level for your stop loss, or you have to set your stop too far away and, therefore, have a reward:risk ratio that is too small, don't take that trade. Most amateurs fiddle with their stop until they think that the potential profit is large enough.

For long positions, I like to hold my options for at least 100 days. This gives me plenty of time to ride out any market fluctuations and take advantage of any upward trends. For short positions, I usually hold for about 50 days. This allows me to capture profits quickly and move on to the next opportunity.

P/E of the Stock

One of the main criteria for shifting the shares in the Trade to Trade Stock Segment is P/E over-valuation. For example, in BSE, if the Sensex P/E is within 15-20 and if the stock has a P/E of more than 30, the stock may be considered for moving to T2T.

Key Takeaways

A good example is when there is an obvious trend reversal. High-volume days are usually quite volatile, and market movers have the ability to influence trades that may leave you "holding the bag," and it is therefore considered good practice to book profits before such days.

Stocks give shareholders voting rights as well as a residual claim on corporate earnings in the form of capital gains and dividends. Individual and institutional investors come together on stock exchanges to buy and sell shares in a public market.

A long-short equity strategy seeks to minimize market exposure while profiting from stock gains in the long positions, along with price declines in the short positions. Although this may not always be the case, the strategy should be profitable on a net basis.