GoodNews for Options traders.

beginner_av · #11 5th January 2007, 01:42 PM

my feel is it will move to fixed amt brokerage...like rs 75 per lot charged by geojit.

rajib333 · #12 5th January 2007, 08:55 PM

Quote:

Originally Posted by beginner_av

my feel is it will move to fixed amt brokerage...like rs 75 per lot charged by geojit.

Yes, my friend,fixed rate may be a good alternative but rs 75 of geogit is too high, whereas RK global charges rs9 per lot.

but, one more concern, STT and Nse charges should be also based on the premium .
i think that comes logically and also gets support by the
circular.
what others think?
Rajib.

rajib333 · #13 5th January 2007, 09:06 PM

check this also , no broker can charge more that Rs100
as brokerage.
http://www.nseindia.com/content/circulars/insp8338.htm

Now, i am waiting for some clarification on STT and NSE
charges.
Rajib.

ashishv · #14 5th January 2007, 11:02 PM

This is excellent news for me in particular as 95% of my dealings are in options. Hurray!!!

I just had one doubt currently i am getting 0.02% brokearge so if i buy option with premium of Rs100 are they going to charge me 2 paise or will broker's increase the brokerage?

thanks
ashish

tanewbie · #15 6th January 2007, 12:50 AM

Quote:

Originally Posted by rajib333

check this also , no broker can charge more that Rs100
as brokerage.
http://www.nseindia.com/content/circulars/insp8338.htm

Now, i am waiting for some clarification on STT and NSE
charges.
Rajib.

Hi
Read the circular again.
It says...... 2.5% of premium or rs 100 whichever is HIGHER

this means tht brokerage may go up instead of down!
eg one lot of nifty 4000 call@100
brkrge@0.03% of 4000*100=Rs120
2.5% of premium is 2.5% of 100*100=Rs 250!
so broker can charge upto rs 250!

rajib333 · #16 6th January 2007, 11:29 AM

It is hereby clarified that brokerage on options contracts shall not exceed 2.5% of the premium amount or Rs 100/- whichever is higher.

i am cnfused, it seems to me that it should not exceed 100rs, wait for more clarification.

Rajib.

nareshch · #17 8th January 2007, 11:15 AM

Quote:

Originally Posted by rajib333

It is hereby clarified that brokerage on options contracts shall not exceed 2.5% of the premium amount or Rs 100/- whichever is higher.

i am cnfused, it seems to me that it should not exceed 100rs, wait for more clarification.

Rajib.

No Confusion

. For a nifty call with premium Rs100 ,the Max brokerage can be charged is 2.5% of premium amount ie Rs250 . The maximum brokerage limit is there from long time but Brokers might use it now with options . I think they may stick to 1% but not 2.5% .Even then the brokerage will go higher compared to the present 0.02% on strikeprice+ premium which many brokers were charging .

Very shortlived good news

(

Naresh

rajib333 · #18 8th January 2007, 12:06 PM

thanks for clarification
really sorry
Rajib.

rajib333 · #19 9th January 2007, 04:18 PM

any broker is giving in this model?
Rajib.

rajib333 · #20 10th January 2007, 09:03 PM

Hi friends,
this is my experience........
1. i called bulls and one more repuated broker, with which i have account. they said they know about the circular but taking brkage in the old way as there was
no date mentioned.

2. i called icicidirect call centre, they just switched off the phone after my query, without telling anything.

3. at last, i also called nse office in Mumbai , they confirmed me that the circular was effective frm 5 th jan2007.

Now what to do of these people?

Rajib.

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