JustTrade (Bajaj Capital) Option Turnover Calculation

Northie · #1 8th April 2009, 04:23 PM

JustTrade (Bajaj Capital) is calculating turnover (I repeat it's turnover and not the brokerage) in options segment by following method:

Turnover = (Strike Price+Premium Paid) X Number of contracts X Contract size

For example if Strike price is 3000, Number of Contract is 10, Premium paid is 60 and Nifty Option Contract size is 50 then

Turnover (according to JustTrade) = (3000 + 60) X 10 X 50 = 1530000 (15 Lac and 30 thousand)

---------------------------------------------------------------------------------------------------------------------

But according to me Turnover in option segment must be as follows:

Turnover = Number of Contracts X Contract Size X Premium Paid

Taking the above same example, Turnover according to me must be as follows

Turnover (in my case) = 10 X 50 X 60 = 30000 (30 thousand)

Now you guys decide whether JustTrade is right or I am right?

PS: I am assuming that they are mixing brokerage calculation (however that is also old brokerage calculation, now brokerage is calculated just on the premium and not the strike price) with turnover calculation but they are not accepting that they are wrongly calculating turnover as told by me to them on customer service number.

stockBond · #2 9th April 2009, 06:29 PM

Quote:

Originally Posted by Northie

JustTrade (Bajaj Capital) is calculating turnover (I repeat it's turnover and not the brokerage) in options segment by following method:

Turnover = (Strike Price+Premium Paid) X Number of contracts X Contract size

For example if Strike price is 3000, Number of Contract is 10, Premium paid is 60 and Nifty Option Contract size is 50 then

Turnover (according to JustTrade) = (3000 + 60) X 10 X 50 = 1530000 (15 Lac and 30 thousand)

---------------------------------------------------------------------------------------------------------------------

But according to me Turnover in option segment must be as follows:

Turnover = Number of Contracts X Contract Size X Premium Paid

Taking the above same example, Turnover according to me must be as follows

Turnover (in my case) = 10 X 50 X 60 = 30000 (30 thousand)

Now you guys decide whether JustTrade is right or I am right?

PS: I am assuming that they are mixing brokerage calculation (however that is also old brokerage calculation, now brokerage is calculated just on the premium and not the strike price) with turnover calculation but they are not accepting that they are wrongly calculating turnover as told by me to them on customer service number.

Recently I found another firm offering the irrestible offer of Unlimited trading with Zero brokerage - (upfront fee is annual 14000). It is good for traders and high volume grossers.

Taking into consideration the volumes generated such charges for annual brokerage is enticing. This is from Bajaj. Never heard before in the market thus worth trying.

Anyone having experience with Bajaj(justtrade.in) ?........Any hidden charges or unfriendly platform...plz share.

Northie · #3 9th April 2009, 06:47 PM

Quote:

Originally Posted by stockBond

Recently I found another firm offering the irrestible offer of Unlimited trading with Zero brokerage - (upfront fee is annual 14000). It is good for traders and high volume grossers.

Taking into consideration the volumes generated such charges for annual brokerage is enticing. This is from Bajaj. Never heard before in the market thus worth trying.

Anyone having experience with Bajaj(justtrade.in) ?........Any hidden charges or unfriendly platform...plz share.

People Beware! May be there some hidden charges in unlimited trading. I strongly don't recommend justtrade for trading purpose but for investors it may sound good to avail lower brokerage.

and to stockbond -- Can't you see, how they calculate the turnover (read my 1st post). They allow only three (I repeat it's three) nifty option contracts to trade (buy and sell) in intraday with 10 lac intraday limit plan!Can you believe that you will cross 10 lac turnover limit by just trading 3 nifty option contracts (lots) only one time in intraday! I mean that is ridiculous! If you trade 4 contracts (lots) in intraday with currently running strikes then you will get to pay huge brokerages (averagely 47/- per contract min. which depends upon the strike price itself. Higher the strike, higher will be the brokerage!). How could you believe a broker who don't even know how to calculate the turnover. They are just mixing up 2 different things i.e. brokerage and turnover. According to their sense the definition for both turnover and calculating brokerage is same as contacted by me to their customer care. If you don't believe then ask them and they will tell you what they think about turnover incase of option segment. WTF!

PS: I have talked to their customer care in Delhi and they are so much confused about calculating turnover. Once their senior executive on the phone told me that they are calculating turnover charges on premium portion of the option contract.

They are totally blind.

To stockbond again -- Are you market executive of justtrade? Because you are posting the same post in different threads (http://www.traderji.com/brokers-trad...j-capital.html) and you seem to endorse justtrade here.

stockBond · #4 10th April 2009, 12:49 PM

Quote:

Originally Posted by Northie

People Beware! May be there some hidden charges in unlimited trading. I strongly don't recommend justtrade for trading purpose but for investors it may sound good to avail lower brokerage.

and to stockbond -- Can't you see, how they calculate the turnover (read my 1st post). They allow only three (I repeat it's three) nifty option contracts to trade (buy and sell) in intraday with 10 lac intraday limit plan!Can you believe that you will cross 10 lac turnover limit by just trading 3 nifty option contracts (lots) only one time in intraday! I mean that is ridiculous! If you trade 4 contracts (lots) in intraday with currently running strikes then you will get to pay huge brokerages (averagely 47/- per contract min. which depends upon the strike price itself. Higher the strike, higher will be the brokerage!). How could you believe a broker who don't even know how to calculate the turnover. They are just mixing up 2 different things i.e. brokerage and turnover. According to their sense the definition for both turnover and calculating brokerage is same as contacted by me to their customer care. If you don't believe then ask them and they will tell you what they think about turnover incase of option segment. WTF!

PS: I have talked to their customer care in Delhi and they are so much confused about calculating turnover. Once their senior executive on the phone told me that they are calculating turnover charges on premium portion of the option contract.

They are totally blind.

To stockbond again -- Are you market executive of justtrade? Because you are posting the same post in different threads (http://www.traderji.com/brokers-trad...j-capital.html) and you seem to endorse justtrade here.

Boss then tell me whick broker is good ? What is your opinion about sharekhan ?

andygp · #5 10th April 2009, 01:45 PM

(strike+premium)x contracts is older way of calculating turnover for brokerage. Now SEBI has recommended that it should be done on premium alone like STT on options. However, since it is only a recommendation all "fixed brokerage" services like JustTrade and RMoney will continue to do it the older way.

Northie · #6 10th April 2009, 05:33 PM

Quote:

Originally Posted by stockBond

Boss then tell me whick broker is good ? What is your opinion about sharekhan ?

Yes boss, sharekhan is quite good. Atleast they are transparent and correct in calculation of turnover, brokerage etc. They know how to correctly calculate brokerage unlike justtrade.

Justtrade is mixing calculation of turnover with brokerage. According to their calculation both turnover and brokerage are the same thing. Atleast the way they calculate the turnvover suggests so! They are even calculating brokerage by old method in which you have to pay brokerage for both strike price as well premium but now latest rules and regulation suggests that we have to just pay for premium portion of the options.

PS: By the way I am not an endorser of sharekhan. It's just my own practical experience about them as I am having account with them for over 1 year. You should check about your local sharekhan broker if you still have some doubts before taking their service. Good Luck.

arvindhbadri · #7 10th April 2009, 05:38 PM

Quote:

Originally Posted by Northie

JustTrade (Bajaj Capital) is calculating turnover (I repeat it's turnover and not the brokerage) in options segment by following method:

Turnover = (Strike Price+Premium Paid) X Number of contracts X Contract size

For example if Strike price is 3000, Number of Contract is 10, Premium paid is 60 and Nifty Option Contract size is 50 then

Turnover (according to JustTrade) = (3000 + 60) X 10 X 50 = 1530000 (15 Lac and 30 thousand)

---------------------------------------------------------------------------------------------------------------------

But according to me Turnover in option segment must be as follows:

Turnover = Number of Contracts X Contract Size X Premium Paid

Taking the above same example, Turnover according to me must be as follows

Turnover (in my case) = 10 X 50 X 60 = 30000 (30 thousand)

Now you guys decide whether JustTrade is right or I am right?

PS: I am assuming that they are mixing brokerage calculation (however that is also old brokerage calculation, now brokerage is calculated just on the premium and not the strike price) with turnover calculation but they are not accepting that they are wrongly calculating turnover as told by me to them on customer service number.

is this calculation part involves option writing...(IMHO only option writing requires such turnover)

Northie · #8 10th April 2009, 05:41 PM

Quote:

Originally Posted by andygp

(strike+premium)x contracts is older way of calculating turnover for brokerage. Now SEBI has recommended that it should be done on premium alone like STT on options. However, since it is only a recommendation all "fixed brokerage" services like JustTrade and RMoney will continue to do it the older way.

Yes andygp. That's what I am talking about. It's not over here as the silly justtrade people are calculating total turnover amount by the same calculation method by which brokerage may be calculated. I mean they are using the old method [(strike+premium) X Contracts] to calculate turnover.

We buy/sell only 4 contracts of nifty and we will cross 10 Lac turnover. They think people are fool in India as they are clearly misleading people by offering them 10 lac Intraday limit. If a person buy and sell 4 contracts in intraday (which is not a very big deal) then he will have to pay 50/- per contract and story is not over here as higher the strike price, higher will be the brokerage. wtf.

Northie · #9 10th April 2009, 05:43 PM

Quote:

Originally Posted by arvindhbadri

is this calculation part involves option writing...(IMHO only option writing requires such turnover)

NO man, Its the general method of calculating turnover by justtrade even if you simply first buy and then sell options contracts and don't even write them.

Northie · #10 10th April 2009, 05:54 PM

Most of brokerage houses here just lure people by offering low and sometime 0 brokerage while there are some hidden charges or policies behind these scheme. On the very first day, I was expecting profit of 190/- while trading with justtrade but these blind people in justtrade debit my account with 207. I was shocked! I called them on customer care and was suprised by the way they are calculating total turnover. When I checked turnover charges in my contract note then those turnover charges were suggesting that my total turnover must be 1/15th of total turnover calculated by justtrade. I asked them if my actual turnover charges are what they have calculated then why the hell they have charged me so much lower turnover charges (which are 0.05% of total turnover as calculated by me i.e. correct turnover) then to my surprise they said that they are calculating turnover charges on premium portion only! I think it must be called premium charges and not the turnover charges. Why the hell they are calling it as turnover charges. They are making their own definition of turnover! what a sick! They said as you (i.e. me) have trade more than 3 contracts in a single day so you have crossed your daily free turnover limit hence you will be charged brokerage and their lowest brokerage was 46/- per contract. I was feeling being deceived by justtrade as trading 4 nifty option contracts in a single day is not a very big deal! People are even trading 10-20 contracts in a single day. Is that mean that they will be charges (207 X 5)/- as brokerage in a single trade! Ha! what a joke! The people in justtrade are just confused. After that day I haven't traded with them. That was my first shockingly bad experience with them. Now I am doing a research about other good brokers in my list.

PS: Dikhawe par mat jao apni akal lagao! while choosing proper broker for you. Don't just run behind their 0 brokerage schemes because other people have said you that they are good! Research for yourself.