Intraday trading

#1
Hi..


how to calculate the profit which i earned in a intraday transaction

i give some useful data:

trading amount:1 lack
brokerage amount:0.03%
service tax on brokerage:12% of brokerage amount
securities transaction amount:0.025%

my purchasing priceL:400
my selling price:404

my doubts:
1.how to calculate the profit earned in this trading
2.is 400 be as single share amount of my 1 lack worth trade
3. so can i calculate my share qyuantity as 1,00,000/400=250???

i need intraday experts help... plz clear my doubts, thanks in advance..

Reg
Mubu
 
#2
In intraday, you can 4 times limit on your cash balance. That means, if you have 1 lakh, you can buy the shares for 4 lakh intraday. The intraday limit differs from broker to broker.

There is scrip margin for every shares. Scrip margin also differs from share to share.

Suppose, The Bharti shares -400 Rs. The scrip Margin is 25%. So you need to pay 100Rs per share. Now 1 lakh/100Rs = 1000Rs. Now you can buy 1000shares of Bharti intraday.


Brokerage- 4lakh * Your Rate
Service Tax- Brokerage*12%
STT= Amout* .025%

Now The purchase Cost is the sum of above.

Like wise, If you sell this @450 Per Share.

450*1000 Shares= 450000Rs.

Now calculate brokerage on 4.5L and ST and STT.

Now the difference between your Net sales value and Net Purchase value is your profit or loss.

Vinothbabu,
Always willing to help others.
 
#4
Service Tax- Brokerage*12%
STT= Amout* .025%
What would be the STT in case of purchase/sale of shares on delivery based transactions?
In rediff site it is given as
a) Purchase/Sale of equity shares, units of equity oriented mutual fund (delivery based) -- 0.10%
b) Sale of equity shares, units of equity oriented mutual fund (non-delivery based) -- 0.02%

Is this correct? Any changes in tax rates?
It is a June 2009 article. Was there any change after that?

Is STT calculated on the total amount(i.e., including brokerage charges and ST charges)?

Also, can you tell me the rate for calculating Stamp Duty and Transaction Charges?
 
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#6
What would be the STT in case of purchase/sale of shares on delivery based transactions?
In rediff site it is given as
a) Purchase/Sale of equity shares, units of equity oriented mutual fund (delivery based) -- 0.10%
b) Sale of equity shares, units of equity oriented mutual fund (non-delivery based) -- 0.02%

Is this correct? Any changes in tax rates?
It is a June 2009 article. Was there any change after that?

Is STT calculated on the total amount(i.e., including brokerage charges and ST charges)?

Also, can you tell me the rate for calculating Stamp Duty and Transaction Charges?

Following few things about day trading brokerage and taxes calculation

- The current maximum intraday brokerage offered is 0.05% for buying and 0.05% for selling (you may
even have less brokerage and if you are paying more brokerage then you should either negotiate or
change your broker)
- The service tax is of 12.36% only on brokerage.
Learn how to take profit in day trading
Learn how to take profit in day trading
Take small profits and do multiple trades
How much you earn in a month with the investment of Rs.10, 000?
How to minimize the losses in day trading
Tips for buying and selling to do multiple trades in day trading
Take small profits and do multiple trades
The successful strategy for day trading is to take small profits and do multiple trades.

Basically it has been observed that many times traders especially day traders loose money due lack of knowledge.

For example - Suppose if day traders buying price is at Rs.200 then he waits till the price goes to minimum Rs.204 or Rs.205 and then they will plan to book profit, which is highly impossible on very frequent basis in single trade or in single move.

If you are expecting Rs.4 to Rs.5 as profit on share price of Rs.200 in single move then you are expecting 2% profit in single trade. So do you think it is convincing you?
We feel this doesnt sound practical and this is the reason why traders loose money after waiting for long time.
- The STT (Security Transaction Tax) is of 0.025% only selling amount.
- The stamp duty on total turnover for a day which is 0.002%.
- and finally you have to pay Regulatory charges on total turnover for a day which is 0.004%

Dont worry these all taxes will add up to very small amount at the end of the day compared to your profits in thousands.

Now lets see how to take small profit which will add up to big amount at the end of the day by doing multiple (more then one) trades.

Example - Buy KotakBank at Rs.315, quantity - 100 i.e. Rs.315 x 100 = Rs.31500.
So if you have Rs.10, 000 in your trading account you can do day trading because you get margin on your available amount for day trading.
Some brokers provide 3 or 4 times or even higher margin amount.
So you bought Kotakbank at Rs.315, Qty - 100 i.e. Rs.315x100 = 31500 and sold it at Rs.316.
You took only Rs.1 as profit for Rs.315 share price and you sold 100 shares so your profit is Rs.100.
So you get Rs.100 as profit in single trade.

Now lets calculate how much you have to pay as brokerage and taxes and finally how much you will get as your net profit behind this single trade.

Your buying amount is
= Rs.31500 (Rs.315x100 Qty shares)
= 0.05% as brokerage (we took it maximum brokerage but you may have even less) on 31500 which comes to Rs.15.75
= you have to pay service tax of 12.36% only on brokerage
= so 12.36% on Rs.15.75 comes to Rs 1.92

The total brokerage + service tax on buying is Rs.15.75 + Rs.1.92 = Rs.17.67

Now lets calculate the brokerage and taxes on selling amount
= you sold KotakBank shares at Rs.316, Qty - 100 so the amount comes to Rs.31600 (Rs.316 x 100 Qty shares)
= 0.05% brokerage on 31600, comes to Rs.15.8
= service tax 12.36% on brokerage comes to Rs.1.93

You have to pay STT (Service Transaction Tax) of 0.025% on selling amount which comes to Rs.6.32.

So total brokerage + taxes you have to pay for selling is
= Rs.15.8 + Rs.1.93 + Rs.6.32
= Rs.24.05.

Total amount you have to pay on buying and selling is
= Rs.17.67 (buying) + Rs.24.05 (selling) = Rs.41.72.

You also have to pay stamp duty and regulatory charges on total turnover.
Your total turn over is calculated by adding the buying amount and selling amount.

Buying amount is 31500 and selling amount is 31600 which adds up to Rs. 61300

Stamp duty - 0.002% and Regulatory charges - 0.004% adds up to 0.006%

On total turnover amount (Rs. 61300) the taxes comes to Rs 3.8.

So the total amount you have to pay including brokerage and taxes is only Rs 41.72 + 3.8 = 45.52

So now the conclusion is you are paying Rs.45.52 while you earned the profit of Rs.100.

So dont you think more then 50% profit in single trade is quite enough to do thousands per day.

If you continue doing such small trades with such small profits then it will end up with big amount at the end of the day.
Suppose if you do 10 trades in a day which is quite possible to add up to Rs.500 per day (Rs.50 per trade as per above example).
Now lets see how to do thousands with same strategy as mentioned above. Its simple you just have to increase your quantity of shares.

In our previous example you have brought only 100 quantities, if you make it double then your profit will also get doubled.



Vinothbabu
 
#8
Thanks so much for the nice explanation:)

Btw, in case of delivery transactions do we have to pay this STT during buying as well as selling?

In delivery based trading, There is STT on Purchase as well as Sales amount.

But in intraday trading, STT is calculated only on selling amount.
 

TraderRavi

low risk profile
#9
Following few things about day trading brokerage and taxes calculation

- The current maximum intraday brokerage offered is 0.05% for buying and 0.05% for selling (you may
even have less brokerage and if you are paying more brokerage then you should either negotiate or
change your broker)
- The service tax is of 12.36% only on brokerage.
Learn how to take profit in day trading
Learn how to take profit in day trading
Take small profits and do multiple trades
How much you earn in a month with the investment of Rs.10, 000?
How to minimize the losses in day trading
Tips for buying and selling to do multiple trades in day trading
Take small profits and do multiple trades
The successful strategy for day trading is to take small profits and do multiple trades.

Basically it has been observed that many times traders especially day traders loose money due lack of knowledge.

For example - Suppose if day traders buying price is at Rs.200 then he waits till the price goes to minimum Rs.204 or Rs.205 and then they will plan to book profit, which is highly impossible on very frequent basis in single trade or in single move.

If you are expecting Rs.4 to Rs.5 as profit on share price of Rs.200 in single move then you are expecting 2% profit in single trade. So do you think it is convincing you?
We feel this doesnt sound practical and this is the reason why traders loose money after waiting for long time.
- The STT (Security Transaction Tax) is of 0.025% only selling amount.
- The stamp duty on total turnover for a day which is 0.002%.
- and finally you have to pay Regulatory charges on total turnover for a day which is 0.004%

Dont worry these all taxes will add up to very small amount at the end of the day compared to your profits in thousands.

Now lets see how to take small profit which will add up to big amount at the end of the day by doing multiple (more then one) trades.

Example - Buy KotakBank at Rs.315, quantity - 100 i.e. Rs.315 x 100 = Rs.31500.
So if you have Rs.10, 000 in your trading account you can do day trading because you get margin on your available amount for day trading.
Some brokers provide 3 or 4 times or even higher margin amount.
So you bought Kotakbank at Rs.315, Qty - 100 i.e. Rs.315x100 = 31500 and sold it at Rs.316.
You took only Rs.1 as profit for Rs.315 share price and you sold 100 shares so your profit is Rs.100.
So you get Rs.100 as profit in single trade.

Now lets calculate how much you have to pay as brokerage and taxes and finally how much you will get as your net profit behind this single trade.

Your buying amount is
= Rs.31500 (Rs.315x100 Qty shares)
= 0.05% as brokerage (we took it maximum brokerage but you may have even less) on 31500 which comes to Rs.15.75
= you have to pay service tax of 12.36% only on brokerage
= so 12.36% on Rs.15.75 comes to Rs 1.92

The total brokerage + service tax on buying is Rs.15.75 + Rs.1.92 = Rs.17.67

Now lets calculate the brokerage and taxes on selling amount
= you sold KotakBank shares at Rs.316, Qty - 100 so the amount comes to Rs.31600 (Rs.316 x 100 Qty shares)
= 0.05% brokerage on 31600, comes to Rs.15.8
= service tax 12.36% on brokerage comes to Rs.1.93

You have to pay STT (Service Transaction Tax) of 0.025% on selling amount which comes to Rs.6.32.

So total brokerage + taxes you have to pay for selling is
= Rs.15.8 + Rs.1.93 + Rs.6.32
= Rs.24.05.

Total amount you have to pay on buying and selling is
= Rs.17.67 (buying) + Rs.24.05 (selling) = Rs.41.72.

You also have to pay stamp duty and regulatory charges on total turnover.
Your total turn over is calculated by adding the buying amount and selling amount.

Buying amount is 31500 and selling amount is 31600 which adds up to Rs. 61300

Stamp duty - 0.002% and Regulatory charges - 0.004% adds up to 0.006%

On total turnover amount (Rs. 61300) the taxes comes to Rs 3.8.

So the total amount you have to pay including brokerage and taxes is only Rs 41.72 + 3.8 = 45.52

So now the conclusion is you are paying Rs.45.52 while you earned the profit of Rs.100.

So dont you think more then 50% profit in single trade is quite enough to do thousands per day.

If you continue doing such small trades with such small profits then it will end up with big amount at the end of the day.
Suppose if you do 10 trades in a day which is quite possible to add up to Rs.500 per day (Rs.50 per trade as per above example).
Now lets see how to do thousands with same strategy as mentioned above. Its simple you just have to increase your quantity of shares.

In our previous example you have brought only 100 quantities, if you make it double then your profit will also get doubled.



Vinothbabu
article chori kiya hai...site se..:D
 
#10
Hi Traders,

I am new to the forum and trading as well. Hope to learn from you all about the important aspects of trading.
yesterday i did 3 sessions of intraday trading with SPIC ltd.
Here is the details of yesterdays transaction : kindly let me know is the brokerage rate valid. If it is high, what are other brokers i can check out?
Because at the end of day i made 1023 as profit and was thinking i would have atleast 50-60% after all the taxes and charges...but the net amount due is 188!.
Is it because of high volumes i traded that the charges are more or is it scrip specific? Any help here would be of great value to me. My Broker is Karvy.


Buy Q SALE Q RATE TOTAL TOT BROK SER TAX STT
SPIC LTD 381 28.20 10744.20 19.05 2.00
SPIC LTD 139 28.20 3919.80 6.95 0.73
SPIC LTD 100 28.20 2820.00 5.00 0.52
SPIC LTD 765 28.20 21573.00 38.25 4.01
SPIC LTD 200 28.20 5640.00 10.00 1.05
SPIC LTD 796 28.50 22686.00 39.80 4.18
SPIC LTD 100 28.50 2850.00 5.00 0.52
SPIC LTD 1000 28.50 28500.00 50.00 5.25
SPIC LTD 104 28.50 2964.00 5.20 0.55
SPIC LTD -1585 28.40 -45014.00 79.25 8.31
SPIC LTD -499 28.60 -14271.40 24.95 2.62
SPIC LTD -13 28.60 -371.80 0.65 0.07 0.09
SPIC LTD -700 28.60 -20020.00 35.00 3.67
SPIC LTD -700 28.60 -20020.00 35.00 3.67
SPIC LTD -88 28.60 -2516.80 4.40 0.46
SPIC LTD 2309 28.45 65691.05 115.45 12.11
SPIC LTD 200 28.45 5690.00 10.00 1.05
SPIC LTD 200 28.45 5690.00 10.00 1.05
SPIC LTD 291 28.45 8278.95 14.55 1.53
SPIC LTD -480 28.55 -13704.00 24.00 2.52
SPIC LTD -25 28.55 -713.75 1.25 0.13 0.18 712.50
SPIC LTD -23 28.55 -656.65 1.15 0.12 0.16 655.50
SPIC LTD -50 28.55 -1427.50 2.50 0.26 0.36
SPIC LTD -20 28.55 -571.00 1.00 0.11 0.14 570.00
SPIC LTD -2 28.55 -57.10 0.10 0.01 0.01
SPIC LTD -10 28.55 -285.50 0.50 0.05 0.07 285.00
SPIC LTD -21628.55 -6166.80 10.80 1.13
SPIC LTD -836 28.50 -23826.00 41.80 4.38
SPIC LTD -1500 28.50 -42750.00 75.00 7.87
SPIC LTD -664 28.50 -18924.00 33.20 3.48
SPIC LTD 1000 28.00 28000.00 50.00 5.24
SPIC LTD -174 28.10 -4889.40 8.70 0.91
 
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