Trade for Trade (T for T) Segment in Stock Trading

What is Trade for Trade (T for T) segment?

The Trade for Trade (T for T) segment is a special settlement category where each transaction is settled individually, without allowing intraday trading or netting off trades. It is used to curb speculation and ensure delivery-based settlement in certain stocks.

What makes T for T different?

  • No intraday square-off: Every buy or sell transaction must be settled independently
  • Delivery required: You must take or give delivery of the securities
  • No netting: Trades cannot be offset during the day (i.e., no same-day buy/sell adjustments)

Example

  • You buy 100 shares of a T for T stock on Monday
  • You cannot sell them the next day (Tuesday)
  • You must wait until the shares are delivered in your Demat account on T+1

Why are stocks moved to T for T?

  • To prevent excessive speculation
  • To ensure settlement discipline
  • Often applied to volatile or illiquid stocks
Always check whether a stock is listed under the T for T segment before placing trades—this can impact your ability to exit a position quickly.

What if...

ScenarioOutcome
I buy a T for T stock and sell it the next dayYou may face short delivery or a compliance penalty.
I buy and sell the same T for T stock intradayNot allowed—each leg must settle individually.
The stock is removed from T for T laterIt will then follow normal rolling settlement rules.

Last updated: 24 Jun 2025