Positional Trade, BTST, STBT

Positional Trade, BTST, STBT P o s i t i o n a l Tr a d e The term positional trading is an important one in the stock market trading c o m m u n i t y. F o r t h o s e w h o a r e r e a l l y i n t e r e s t e d i n t r a d i n g t h e s t o c k m a r k e t , p o s i t i o n a l t r a d i n g i s a g o o d o p t i o n s i n c e i t i s a l o n g - t e r m t r a d i n g s t r a t e g y. I t is a basic trading strategy which is a complete vice-versa of intraday trading that allows you to maintain your positions in the stock market for a longer period of time.

P O S I T I O N A L T R A D E , B T S T, S T B T a r e a l l v e r y i m p o r t a n t e l e m e n t o f s t o c k market.

There is an advantage for you, you don't have to be a full-time trader or s p e n d a l l d a y l o o k i n g a t t h e s c r e e n l i k e a n i n t r a d a y t r a d e r. P o s i t i o n a l trading involves using technical and fundamental analysis to assess possible fluctuating market price trends.Few positional trading strategies help investors to grow with more benefits.

BTST In simple terms, it is a short-term trading method in which a trader or an investor buys some shares today, either in cash or on the F&O market, and sells them the next day.

Instead of taking a long position and keeping it for a long time, the trader sells the stock the following day after buying it.

A BTST position is taken on stocks that are projected to trade at a higher price tomorrow as compared to the price they are trading today.

STBT STBT means selling the stock today and buying it back tomorrow. Because short selling is prohibited in the equity section of the stock market, only F&O stocks can be sold.

STBT positions are taken in financial and operational stocks that are predicted to trade at a lower price tomorrow than they are trading today. In the event of a short equity segment, this isn't possible.     

Some Popular STBT Trading Strategies Breakdown in the price movement of the security on the day of shorting/selling to be bought in the subsequent days (t+1).

Selling before a major event expecting short-term volatility in price.

Trade in securities that have high liquidity.

Profit booking at 1 point less than the original target price.

Wrap-Up An experienced trader can use several time frames and risk-to-reward approaches to diversify risk. For example, gap up and gap down, statistically, offer better returns while posing a significant risk. BTST and STBT are high-risk, high-reward strategies.

Note- If you want to start your investment or trading journey you can opt for the stock market basic course in which you can learn about stock market basics and investing strategies and a lot more about Positional Trade, BTST, STBT which will help you to kick-start your investment journey.