How does BTST work?

BTST (Buy Today, Sell Tomorrow) refers to a trading approach where shares are bought on one trading day and sold on the next trading day, before they are credited to the Demat account.
For example, on Monday, the client purchases 5 shares of Reliance at ₹2,000 each, with a total buy value of ₹10,000. According to the settlement cycle, this trade will be settled on T+1 day, i.e. Tuesday.
On Tuesday, the client sells the same 5 shares of Reliance at ₹2,100 each, with a sell value of ₹10,500 before the trade is settled.
On Tuesday, the stockbroker allocates the received shares to the client's upcoming delivery obligation, and the sell transaction is settled on Wednesday.