What It Means
Trade to Trade (T2T) is a category certain stocks are placed into — usually to curb speculative or manipulative trading — where every trade must be settled by actual delivery. No intraday buying and selling of the same stock is allowed, no BTST, and no netting off positions within the settlement cycle.
How It Works
NSE lists these under its 'BE' series and BSE under 'Group T'. Exchanges review which stocks move in or out of T2T periodically, based on volatility and price-manipulation signals. If you buy a T2T stock, you must take delivery — you can't sell it back the same day even if the price moves in your favor, and you can only sell once the shares actually settle.
Warning
Buying a T2T stock expecting to flip it for a quick same-day profit doesn't work — the sell order isn't treated as a square-off of your buy, and any resulting shortfall goes straight to auction rather than a same-day fix.