PLEASE HELP...regarding brokerage calculations.

I never trade options. But after severe coaxing by RM i fell into the trap and let him make a trade on my behalf....incurred heavy loss....grave mistake i made

My account is with Indiabulls.

I bought OPTIDX 3600 NIFTY 28 May2009 PUT option :

10,000 @ Rs 6 and sold at Rs 5.74 avg. in INTRADAY

what would be my total loss ? what will be the brokerage ?
how to calculate brokerage on options ?

i have been slapped with Loss of RS 51,511 !!

and brokerage of Rs 40,000 :annoyedand service tax 4120)...

is it real ??

PLEASE HELP

From the figures you have given I guess the broker has charged you flat fee per contract of Nifty. If that be the case, then it is true (200 lots * Rs.100). The Broker might have charged Rs.100 per contract for buying side and Rs.100 per contract for selling side.

But normally this is too high flat fee charged and mostly the brokers charge only one side of the trade for intraday. Check with him the brokerage structure for options. If its flat and is more than Rs.35 or Rs.50 per contract then it is too high and this loss is accountable.

THUMB RULE: Do not allow even your shadow to trade in your a/c.

Let me know the structure. We will calculate.

Thanks for replying...

my brokerage structure is 2.5% ...as told by RM

i am attaching image of contract note...

i have no clue how to calculate brokerage in options..

I swear i will NOT let even my shadow trade on my a/c...a lesson badly learnt.

ikon,

It is as I guessed. They have charged Rs.100 per contract per side of trade. 2.5% calculation is not working out. Ususally % calculation is applied on strike price. Your contract note shows that they have not applied % calculation. Even if they apply % calculation your brokerage runs to 18k per side. And your broker is charging both the sides for intraday which is a rare occassion.

Better check with him once.

BTW, have you traded options before in your a/c???????????

Thanks for the help... i will talk to RM & CC abt double brokerage

i have not traded options before....

Thanks again !!

All the best ikon:thumb:

Be confident that we can always recover from this markets if not from the broker. Be double careful with these types of brokers. I have same experience in my trading history.

any person who is not authoized as by sebi cannot trade on behalf of clinets. indiabulls is a broker and not a fund manager thus not authouized to put trades on your behalf.

in the stock market there can be profit or loss. but here its not the case. the trades are executated with the sole motive of generating brokerage.

do not call anybody. mail them. this way you will have a written document which can be helpful in future.

this link might help you http://www.nseindia.com/content/assist/asst_investser.htm

With what authorisation can RMs trade in one's account? Does it come in the POA or is it verbal authorisation?
I know brokers offer 2 types of accounts one online (with POA) and the other offline ( which requires to trade through the RM).
I believe that brokers need to maintain a record of any trader orders given through telephone. I have seen this done in Geojit. Is it done at all brokers?