BTST (Buy Today Sell Tomorrow)

When an investor buy shares, he have to wait for the shares to be transported into his demat account, then only he can sell them. It takes 2 trading sessions to transport the shares. But as per other criteria, if the stock price moves up on the very next day, he cannot sell it. Only when the broker offers you the BTST or Buy Today Sell Tomorrow facility, the investor can sell shares on the next day even if the prices go up. This facility thus gives an investor a higher liquidity.

Margin Trading

Margin Trading is one of the most famous facilities among short term investors. This is even offered by much smaller brokerages. Generally when you want to buy shares, you need to have full funds in your bank account; while when you want to sell, you need to have some shares in your demat account.

But as per margin trading, by paying the interest cost for the funds used to trade, you can leverage. You can take 3 to 5 times more exposures of the fund you have. You can also settle your trades within 5 days. "Typically, this is meant for traders, and long term investors would do well not to indulge in such products," says Alok Churiwala, Managing Director, Churiwala Securities, as told to ET.

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