Wednesday, June 13, 2012

What are T2T (Trade to Trade) stocks?



In ‘Trade to Trade’ (or T-group) segment shares, speculative trading is prohibited that means one can’t square off his intraday position.
If someone who buys shares of T2T category shall necessarily have to take the delivery of the purchased shares and intraday squaring-off is not allowed.
Similarly, a seller of T2T shares should necessarily provide the delivery of the sold shares.
Another feature of T2T shares is lower circuit filter- share price can move 5% (on either side) only.
Stocks showing very excessive volatility or spurious price movement are shifted to ‘T2T’ segment.


IPO listing & T2T

Newly-listed IPO shares trade under ‘Trade to Trade’ category for first 10 days from the listing-day.
In past we have seen abnormal price movement in many IPO shares on the listing day.
Birla Pacific Medspa, a BSE listed share moved up  whopping 207% on its debut day while shares of Indo-Thai securities tanked 75 % on the day of listing.

5 comments:

  1. why is stock like united spirits and united breweries not shifted to t2t which is highly volatile stock where so many investors lost money

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  2. United spirits is traded in the derivative market and hence it is not there.

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  3. Future Retail share shifted to T2T, tomorrow any price fall will be there?? I am concern since I am holding the shares - please confirm

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  4. Shifting a share into T2T segment results into a fall only when some undergoing speculative action comes to a halt else share price is determined by fundamentals of the stock.

    ReplyDelete