Brokerage on Options trading in icicidirect.com?

Hello,
I contacted icicidirect and asked about the brokerage charge on trading options through their brokerage.The reply came as follows.

"0.05% Brokerage of the transaction value (on each legs) +
10.30% Service Tax (of brokerage) +
0.017% STT only on the SELL transaction ( does not require squaring off on the same day ).

Please note that Transaction Charges will be charged @ 0.0035% for NSE and 0.0034% for BSE on turnover and Stamp Duty will be charged at 0.01% on delivery trades and 0.002% on non delivery trades.

Effective Transaction Charges would be 0.003860%.
Stamp Duty will be charged at 0.002% on turnover"

I cannot understand the meaning of this.Just assume that i buy one lot of nifty call option with strike price 5000(nifty CE 5000) with a premium of Rs.100 and later sell the same lot with premium of Rs.120.How can I calculate the total brokerage charge?Please reply by posting the calculations for both buy and sell transactions seperately.

That is too high brokerage you are paying, they might have a minimum brokerage as well... I guess its 150/- for ICICI on per leg...

so if you bought 1 lot of 5000CE at the price of 100 then your volume is (5000x50) = 250000 and the brokerage will be charged on this... ie. 250000x0.0005 = 125

Now you are paying 125 or if the minimum is 150 then rest charges will be calculated on this amount... for sake of convenience lets assume yoour entire brokerage on single side is 150 then your break even will be 300/- (buy+sell)

now divide this 300 / 50 = 6, so you have to sell it above 100+6 at least to go green...

if you are able to sell it at 120 then you are getting 14rs as profit

the problem with this breakeven is that its too high... which is 6% of premium paid in this case, what if you need to close it with a SL? say your SL is 95 but your SL actually turned to be 89 as you have 6rs as breakeven...

ICICI charges 100rs per leg. If sqrd off on Intra-day then second leg is free but STT taxes etc are levied (comes to around 15-35 rs for one lot Nifty depending on price). So 150 per intra-day transaction.

Again, if you have an overnite, sq off and buy that again, then this is 2 new trades and ICICI charges per leg for both the transactions whereas they can (and do?) take the malai except the taxes as it is intra-sqoff and they charge delivery ....

what? delivery of derivatives... heheh thats funny

Overnite positions .. my typo ...

:lol:

hello,
thank you for ur reply.which online trading portal do you think charges the lowest brokerage commission?
regards,
sujeeth.

R K Global charges Rs 9 flat for one leg of Option. For futures I am not sure. But i suppose that too would be rock bottom rates ...

Hello,
Thank you for ur reply.Does R K global provide online trading services?
regards,
sujeeth

thanks for the info but u can as well go to RK global site , talk to the customer care and then let us know about the services of RK global rather than asking a question about what services it provides ..

I visited www.rkglobal.net and found that to trade in f&o the charges schedule is:

Brokerage : Rs.9 per lot
Exposure margin:As prescribed by NSE or 15% whichever is higher.
Software Maintenance Charges (Web Version) :Rs. 99/-* per month per segment
Software Maintenance Charges (Diet-Odin) : Rs. 299/-* per month per segment
*Service Tax extra as applicable
NSE charges and other statutory levies e.g. STT & Stamp Duty etc. shall be charged extra as applicable.

What is meant by exposure margin.what is the difference between web version and diet-odin?

regards,
sujeeth.