Futures brokerage gave me a shock

[Vijay1]

Hello Guys, how you doing? hope all will be fine.

Guys I am a option trader basically and had never traded futures, looking at the pros of futures being no "time decay" advantage i thought to give it a shot but to my surprise what i expected was totally opposite, I planned to do a price action scalping for 5-10 points on 1 min time frame on NIFTY but what i did not knew that a heavy brokerage burden was waiting for me..

I have my account with UPSTOX pro, with flat 40 rs per trade, but being a newbie to futures it came like a shocker! STT and tons of other charges came with vengeance. i managed to get 22 points on nifty but all in vein, infact i was sitting in loss!

Is that you guys do future this way?? what i need to understand? what best i can get out with the futures segment??

with increase in LOT size the STT goes in Thousands of rs i just cant get how so many people get away with futures??? its like DONATING money to GOV and making you broker rich!!

Please guys tell me your way of handling futures! thank you

 

[haruns]

High STT and transaction charges especially in INDEX FUT make scalping hard. you should always know you break even point before trading any instrument. this applies to everything not just Futures.

Broker who does allow unlimited brokerage plan can help you in keeping transactions costs lower in options segement. but for future there is no escape you have to be able to catch a fair size swing in futures intraday which covers your break even cost as well gives you profit as per your RR. (risk to reward ratio)

also remember in options transaction costs are low but competition is high among the scalpers.

 

[cinderblock]

With Upstox the BE for Nifty futures should be ~4 points.

 

[Raj232]

Hello Guys, how you doing? hope all will be fine.
its like DONATING money to GOV and making you broker rich!!

Donation is how this market works, lots of fixed costs. The exchange also PAYS brokers for volumes, so if in case they give you more trading indicators and more tools to trade, the broker gets paid more from the exchange, apart from brokerage and other data feeds, automation API's, etc.
Needless to talk about the exchange officials salaries
in short it is no longer a free buy and sell by buyer and seller. Every trade is just protecting your position from going into loss.
10 yrs back 85% retail was in loss, as of now it would be above 90%.
Check you break even point before trading anything, apart from risk reward for any trade.

 

[TradeMind]

You can do stock futures they have better brokerage to volatility parity, where the NIFTY future is very expensive but it's unit movements are not big enough to justify its brokerage cost, I will say these indexs are only good for option trading.