Algo Trading


Stock Market Blogs

What is the meaning of Trade to trade (T2T) in share market? September 01 2017Stock Market Trading

Visit Count: 2858

What is the meaning of Trade to trade (T2T) in share market?

Share market is full of speculation. The Securities and Exchange Board of India (SEBI) is the governing body that regulates the stock market. It looks after the interest of the traders and investors. It often happens that the traders and investors suffer a good amount of loss due to speculation activities in the stock market.

In order to protect the interest of the shareholders, the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) after consulting the SEBI, moved the stocks to “Trade-to-Trade” or “T2T” or “T” segment.

Let us understand what is Trade To Trade.

What is the meaning of trade to trade?

Trade to Trade is a segment of shares in which intraday trading of shares is prohibited. The investor can purchase the shares only on delivery basis. While purchasing the shares, the trader/investor needs to pay the amount in full for the shares he purchased. Similarly, he cannot sell the shares till he receives the delivery of the shares in his demat account. On receiving the delivery, he can sell the shares. So the script settlement is done on Trade to Trade basis and netting off is not allowed for the day. In simple words, Trade to Trade does not give the opportunity to trade in intraday. 

Let us take an example to understand Trade to Trade in a better way

Example of Trade to Trade

In regular rolling settlement, a trader can indulge in intraday trading. He can buy and sell the same security on the same day. However, this is not the case with securities in Trade to Trade segment. Suppose a trader buys 1,000 shares of GMR Infra at Rs.17 and sells them on the same day at Rs.18. Here, the trader has gained the profit of Rs.1 on 1,000 shares in intraday trading.

If the same stock i.e. GMR Infra falls under Trade to Trade segment, the trader will have to first take the delivery of shares by paying Rs.17,000 to the broker. Further, the trader cannot sell the shares until the delivery of shares come in his demat account. Only when the delivery of shares gets reflected in the demat account, the trader is allowed to sell his holdings in the market.

The National Securities Clearing Corporation Ltd (NSCCL) does not take any case of clearing or settlement of trade executed on Trade to Trade basis on the exchange. But there may be circumstances when the trader may take a contra position in case of Trade to Trade securities. In such cases, the transaction gets cancelled.

Let us look at the cancellation of trade process and penalty thereon.

Cancellation of Trade

If any deal is executed in the T2T segment and the clearing member cancels it, then the trader shall be charged with a penalty. The penalty charge for cancellation is Rs. 1000. If the clearing member is involved in buying as well as selling, the penalty for such trade cancellation is Rs. 2000.

In case the member is unable to settle the trade due to some unavoidable reasons, he is required to take the prior approval of NSSCL for seeking an extension of the settlement date.

Now it is important to learn whether trading in Trade to Trade segment is safe or not.

Is Trade to Trade Segment Safe for Trading?

A stock is good for investment if it has the interest of buyers. One can find this out by looking at the volumes in the stock. However, the higher volume can lead to speculation. This led to introduction of Trade to Trade segment. When the stock becomes the part of this segment, it becomes very safe for investment. The reason is very simple; it gives protection to the investors against erratic price movement and speculation.

Indira Securities provides the facility to investors to invest in securities that are in Trade to Trade segment. We as a leading financial advisory firm provide the facility to investors and traders to invest in securities, derivatives, commodities, currencies, etc. With our regular stock recommendations, the traders can make good profits. Our recommendations are based on technical study of stocks. We also give long calls based on fundamental analysis. Our mobile app is very simple and easy to use. It acts as your companion to trade on move. Open a demat account with us and enjoy our premium services at lowest costs. Reach us via email or phone for any query and information.

Blog Enquiry

Prevent Unauthorized Transactions in your demat and trading account --> Update your Mobile Number/Email id with your Depository Participant and Stock Broker. Receive alerts on your Registered Mobile for all debit and other important transactions in your demat/trading account directly from CDSL and Stock Exchanges on the same day.........issued in the interest of investors...

1. Stock Brokers can accept securities as margin from clients only by way of pledge in the depository system w.e.f. September 1, 2020.

2. Update your Mobile Number & Email Id with your Stock Broker/ Depository Participant and receive OTP directly from Depository on your Email Id and/ or Mobile Number to create pledge.

3. Pay 20% upfront margin of the transaction value to trade in cash market segment.

4. Investors may please refer to the Exchange's Frequently Asked Questions (FAQs) issued by NSE vide. Circular No. NSE/INSP/45191 dated: July 31, 2020 and NSE/INSP/45534 and BSE vide Notice No. 20200731-7, dated: July 31, 2020 and 20200831- 45 dated: August 31, 2020 and dated: August 31, 2020 and other guidelines issued from time to time in this regard.

5. Check your Securities/ MF/ Bonds in the Consolidated Account Statement issued by NSDL/ CDSL every month.


  • 9 out of 10 individual traders in equity Futures and Options Segment, incurred net losses.
  • On an average, loss makers registered net trading loss close to ₹ 50,000.
  • Over and above the net trading losses incurred, loss makers expended an additional 28% of net trading losses as transaction costs.
  • Those making net trading profits, incurred between 15% to 50% of such profits as transaction cost
"As per the directives of CDSL and esteemed Exchanges, it has been made mandatory for every client to furnish their latest KYC details viz. Valid Mobile No., Email- Id & Income range on or before 31.05.2021 else your Account will be marked as Non Compliant and will be Freezed till the compliance of such requirement."
"No need to issue cheques by investors while subscribing to IPO. Just write the bank account number and sign in the application form to authorize your bank to make payment in case of allotment. No worries for refund as the money remains in investor's account."
"KYC is one time exercise while dealing in securities markets - once KYC is done through a SEBI registered intermediary (broker, DP, Mutual Fund etc.), you need not undergo the same process again when you approach another intermediary."
Dear Investor if you wish to revoke your un-executed eDis mandate, please mail us with ISIN and quantity on by today EOD."

INDIRA SECURITIES PVT.LTD. (SEBI REG.NO.):NSE TMID: 12866, BSE TMID: 663, CDSL DPID: 17000 SEBI REG. NO.: INZ000188930, MCX TM ID: 56470, NCDEX TM ID: 01277, CDSL REG. NO.: IN-DP-90-2015, CIN : U67120MH1996PTC160201




Indrendu Joshi. Email: Call : 0731-4797275

Investor grievance complaint :