Zerodha is a well know & SEBI registered brokerage firm of India. many people have different questions about the system of the company. While the most popular question is What is T1 in Zerodha? Before we checkout the answers. Lets See what is Zerodha?
Table of Contents
Zerodha
They began services on August 15, 2010, with the aim of eliminating all expense, assistance, and technological hurdles that traders and investors face in India. They called the business Zerodha, which is a blend of Zero and the Sanskrit word “Rodha,” which means “barrier.”
We are now India’s largest stock broker in contexts of active retail customers thanks to our innovative pricing strategies and in-house technologies.
Daily, over 5 million investors use our strong ecosystem of equity platforms to position millions of orders, accounting for approximately 15% of all Indian retail trading activity.
Other Works
In addition, to encourage retail traders and investors, they run a range of common open online learning and social programs.
Our fintech investment and incubator, Rainmatter, has funded in a number of fintech startups with the intention of expanding the Indian capital markets.
What is T1 in Zerodha?
The T1 in your Zerodha website and kite App is a description of the shares you’ve purchased but haven’t yet been transferred to your Demat account.
Delivery System
In India we have a T+2 settlement period on the exchanges. When you purchase stocks on T day(Trading Day), they don’t settle in your Demat account until T+2 day(48 Hours). As a result, even though you buy a stock, you can’t claim to own the whole stock number until T+2 Day. If you sell this shares prior T+2 Day, you run the risk of a shortfall and a short delivery.
Kite Options
For ease of monitoring, Zerodha divides customer holdings into two menus. Positions and Holdings are two different types of holdings category in Zerodha.
Positions
It will shows the T day(Trading Day) Positions like the stocks you have purchased for Intraday, For Delivery or sold stocks from you holdings.
Holdings
Holdings will show you 3 different type of status.
0 Qty. (T1: x)
Once you buy any X no. of stocks of any company for delivery on the next day of Purchase it will show you a status of 0 Qty. (T1 X). It means the stocks in waiting list of exchanges to settle with the previous owner of the stocks. Above screenshot shows you what is T1 in Zerodha look like?
0 Qty. (T2: x)
It means that stocks are settled with exchange and will be transferred to your demat account on this evening after trading hours. However, sometime they settle it anytime after 1430 hrs.
X Qty
After T+2 days, stocks will show you in your holdings without any t and just number of stocks you are holding with each companies trading symbol will appear in your holdings. It means you are sell and buy them without any penalty now.
Example of zerodha t1 meaning
For eg, if you purchased 20 shares of TCS on Friday (T day), they will appear in your holdings with T1 status on monday and T2 status on Tuesday. On Wednesday they will appear with any T status in your Demat account.
What is a T1 stock?
T1 stocks are those that you’ve purchased but have yet to get delivery, i.e. they haven’t arrived in your demat account. T2 shares are stock that you have in your demat account. The stocks are displayed in your demat account following T+2 days (settlement cycle).
Can I get dividend on T1 holding?
You must have acquired the shares before the ex-date to be entitled for the dividends (If you sold the shares on the ex-date, you will be entitled for dividends). You will not be entitled for the dividend if you bought the equities on or after the ex-date.
Conclusion
T1 in Zerodha is confusing for beginners but once you go though this article your doubts will be cleared.
This is all from our side regarding What is T1 in Zerodha? Let me know your views about what is t1 holding in the comment section.
Other Interesting blogs related to what does t1 mean in zerodha?
How to Sell T1 Holdings in Zerodha?
Best Books For Stock Market Beginners in India
FAQ About t1 meaning in zerodha
What is T2 in Zerodha Holdings?
T2 is the day on which you will get the share credited in your demat account after the trading season.
How much market share do Zerodha have right now?
Zerodha right now have 15% market share of overall Indian stock market retail business.
what does t1 mean in zerodha?
The T1 in your Zerodha website and kite App is a description of the shares you've purchased but haven't yet been transferred to your Demat account.
can we sell t1 shares in zerodha ?
Yes, You can sell the shares without any issues. However, they might charge you penalty for doing that.
Where i can see my intraday Buy and sell positions in Zerodha?
There is a section called positions in Zerodha next to holdings.
