For many users of Zerodha’s trading platform, especially beginners, understanding the various order statuses and terminology is crucial. One of the most common points of confusion is the appearance of ‘Qty 0 T1’ in a portfolio. Traders often worry when they see this line item, assuming something has gone wrong with their trade or settlement. However, this indicator is not an error it’s a normal part of how shares are processed after a trade. To make sense of it, it’s important to break down what ‘Qty 0 T1’ means, how it affects your holdings, and what actions, if any, are needed.
Understanding Qty 0 T1 in Zerodha
What Does Qty 0 T1 Mean?
In Zerodha, and other brokerage platforms in India, T1 refers to the shares that are in the first day of settlement after a purchase. The stock market in India follows the T+1 settlement cycle, meaning shares bought on a trading day (T) are settled on the next working day (T+1).
Qty 0 T1 typically appears in your portfolio when you have placed a buy order for a stock, and the trade has been executed, but the shares are yet to be credited to your demat account. The ‘Qty 0’ part indicates that there are currently no fully settled shares available in your holdings. Meanwhile, ‘T1’ shows the shares are in transit and will reflect soon.
Breakdown of Settlement Cycle
Understanding the settlement process will make the concept clearer:
- Trade Date (T): The day you place and execute your buy order.
- T+1 Day: The day on which the shares are credited to your demat account.
During the transition from T to T+1, your portfolio may show the line item Qty 0 T1 until the shares are fully settled.
Why Qty 0 T1 Appears
Pending Share Delivery
After you buy shares, they do not instantly appear in your demat account. Instead, they go through a clearing process, which takes one business day. Zerodha shows T1 holdings to inform you that your purchase has been acknowledged, but settlement is still pending.
Multiple Orders or Partial Executions
If you place multiple buy orders or your order gets executed in parts, your portfolio might temporarily show inconsistent quantities. You might see something like ‘Qty 0 T1’ alongside other entries if only part of the trade is settled or still being processed.
Trading Platform Display Logic
The Qty 0 T1 entry is often a temporary line created by how Kite displays holdings. Once the settlement is complete, it disappears or updates to show the correct quantity under your holdings.
Can You Sell T1 Holdings?
Understanding BTST (Buy Today, Sell Tomorrow)
Yes, Zerodha allows BTST trades Buy Today, Sell Tomorrow. This means that even though the shares are in the T1 stage, you can sell them before they are credited to your demat account. However, this comes with a few risks:
- Auction Penalty Risk: If the shares you purchased are not delivered by the seller due to technical or settlement issues, you might face an auction penalty.
- Short Delivery: The broker may not receive the shares on T+1 due to short delivery by the counterparty.
While BTST is useful for short-term traders who want to take quick advantage of price movements, it is important to be aware of these potential downsides.
Impact on Portfolio and Trading
When to Expect Changes in Quantity
If you see Qty 0 T1 in your portfolio today, you can expect the status to update by the next business day. Once the settlement is completed, it will either show up as settled quantity under the main holdings or reflect as Qty X with no T1 notation.
Confusion During Volatile Trades
During fast market movements, traders often check their portfolios multiple times. Seeing Qty 0 T1 might cause anxiety or confusion. It’s important to understand this is just an intermediate status and not an issue with the trade execution.
Intraday vs Delivery Trades
Qty 0 T1 only appears for delivery trades. If you’re doing intraday trading (MIS orders), your positions are squared off on the same day and don’t enter the T1 phase. So, if you’re only trading intraday, you won’t encounter this terminology.
How to Check Share Status in Zerodha
Using Kite Web or App
To get a full picture of your share settlement, use the Holdings tab on Kite. Here’s how you can interpret the details:
- Qty: The settled quantity of shares in your demat account.
- T1 Qty: Shares pending settlement, expected on the next trading day.
If you want further detail, use Zerodha Console to track your trade history, P&L reports, and settlement summaries.
Relying on Email Confirmations
Zerodha also sends trade confirmation emails after every order is executed. These can be used to double-check your transactions if your Kite portfolio is showing temporary discrepancies.
Best Practices for Zerodha Users
Don’t Panic Over Temporary Status
It’s completely normal to see Qty 0 T1 in your holdings after buying stocks. The entry will auto-correct after settlement, so there’s no need to take immediate action or raise support tickets unless the status persists beyond two business days.
Track Orders Using Trade Book
To avoid confusion, always cross-verify trades through the order book and trade book inside the Kite platform. These tools provide real-time updates on order execution and fill status.
Wait Before Making Critical Decisions
When planning to sell newly bought stocks, try to wait until the shares are fully settled. Though BTST is available, it carries a level of uncertainty that can be avoided by waiting one more day.
Qty 0 T1 in Zerodha simply means that your buy order has been successfully placed and acknowledged, but the shares are yet to be credited to your demat account. This is a routine part of the T+1 settlement process used in Indian stock markets. While it may initially cause concern, especially for new investors, it does not indicate any error or issue. By understanding what it means and knowing how to track your holdings properly, you can make better decisions and avoid unnecessary confusion in your trading journey. Always keep a close watch on your order and trade books, and give the system time to update before drawing conclusions about your holdings.