STBT stands for “Sell Today, Buy Tomorrow.” It refers to a trading strategy in which an investor sells a stock on one day and buys it back the next day, taking advantage of the price difference between the two days.
STBT trades are typically executed in the cash market, which is the market for buying and selling securities on the same day. They can also be executed in the futures market, which is a market for buying and selling contracts for the future delivery of a security.
STBT trades are often used by traders who want to take advantage of short-term price movements or who want to hedge their positions in other trades. However, they can be risky, as they involve holding a position overnight, which exposes the trader to the risk of overnight price changes. As such, they should be used with caution and with a clear understanding of the potential risks and rewards.
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