All brokerage calculators MISLEAD traders.

onlinegtrash

Well-Known Member
#1


Here is a quiz for you guys, from the above trade.

What will be the final settlement amount I will receive by evening?

170.12 (Pro plan, selected the state of TN).

Good,

What is the break even?

1.35 right?

======================


My plan is dream plan, the calculator says break even is 3.15


Wrong. Wrong. Wrong.

I have made the exact trade, my final take home settlement is: 98.74 !!!
Lets keep score in points, for 1 lot.
98.74 INR = (98.74/25) points = 3.95 points.

Although I have made 8.15 points, brokerage+tax has eaten 4.2 points (i.e 8.15-3.95).

So my actual break even is 4.2 NOT 3.15

=======================

All calculators amazingly misleading....
---------------

Let me know if you guys have better real break even schemes and plans.

Code:
1 Lot = 25
Buy = 8889.65
sell= 8897.80

Profit = 203.75  (i.e 8.15*25)
---------
First detection brokerage:
    40 for brokerage
---------
Second detection:
    serv tax            : 4.8
    cess                : 0.14
    STT                 :22.24
    stampduty           :26.68
    transaction charges : 8.45
    clearing charges    : 0.89
    sebi fees           : 0.89

    ST on transaction   : 1.05
    ST on clearning     : 0.11
--------------------------------
    Total               :65.00

Take home: Profit - first detection - second detection
======================================================
203.75 - 40 -65 = 98.75
 
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amitrandive

Well-Known Member
#2


Here is a quiz for you guys, from the above trade.

What will be the final settlement amount I will receive by evening?

170.12 (Pro plan, selected the state of TN).

Good,

What is the break even?

1.35 right?

======================

Wrong. Wrong. Wrong.

I have made the exact trade made my final take home settlement is: 98.74 !!!
Lets keep score in points, for 1 lot.
98.74 INR = (98.74/25) points = 3.95 points.

Although I have made 8.15 points, brokerage+tax has eaten 4.2 points (i.e 8.15-3.95).

So my actual break even is 4.2 NOT 1.35

=======================

All calculators amazingly misleading....
---------------

Let me know if you guys have better real break even schemes and plans.
Most calculators ignore, stamp duty,STT,Transaction tax,all other items such some even skip the brokerage.
Mainly the service tax on all items individually.
 

onlinegtrash

Well-Known Member
#5


had some free time to plot these charts...
Code:
import numpy as np
import matplotlib.pyplot as plt
loss_points = np.arange(10, 50, 10)
win = np.arange(30,70,1)

fig = plt.figure()
ax = fig.add_subplot(111)
for l in loss_points:
    be = (100*4.2 + l*(100-win))/win #4.2 is the real break even
    plt.plot(win,be, label= 'SL points: %d'%l)
ax.set_xlabel("Percentage Win")
ax.set_ylabel("Required Break Even points")
plt.legend()
plt.grid()
 
#7
zerodha says its 3.13 points.



they also state that this is exclusive of stamp duty, which is 9 rs(0.002% of turnover) for maharashtra. so profit should be around 125.42-9= 115 rs approx

and assume a bid-ask spread of 0.5 points which is 12.5 rs(per lot). hence final
profit= 115-12.5= 103 rs approx

if u got 98 bucks, what happened to 5 rs(103-98)?

@onlinegtrash, since the transaction costs remain relatively subdued even if the lot size is huge, the points to BE drops substantially when trading stock futures. done correctly its close to 0.25-0.33 points to BE for a stock whose CMP is around 200 and lot size>=1000
 
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