# options brokerage calculation

#### dito_cal

##### New Member
I am very much confused about how the brokerage calculations are made in call & puts in options.Will be helpful if some one guides me.

Thanks

##### Super Moderator
dito_cal said:
I am very much confused about how the brokerage calculations are made in call & puts in options.Will be helpful if some one guides me.

Thanks
It is important to understand that brokerage is calculated on the entire contract value and not just on the premium.

For example the brokerage of 0.10% on a Rs. 500.00 strike price option of ACC would be:

Rs. 500 * 600 (contract size) * 0.10% (brokerage) = Rs. 300.00

This is just the basic brokerage. All other taxes will be extra.

#### dito_cal

##### New Member
Thanks for ur reply,it was of immense help

#### vikaas

##### New Member
Hi,
Brokerage caliculated on strike price plus option premium too
500 (strike price)+premium *600 (lot size) * 0.10%(brokerage)and taxes.

regards
Vikaas

#### indi007

##### New Member
It is important to understand that brokerage is calculated on the entire contract value and not just on the premium.

For example the brokerage of 0.10% on a Rs. 500.00 strike price option of ACC would be:

Rs. 500 * 600 (contract size) * 0.10% (brokerage) = Rs. 300.00

This is just the basic brokerage. All other taxes will be extra.
can u give OPTION EXAMPLE IN DETAIL ( ALL Taxes ) Buy and Sell IF any web pages in which can be useful to a NEWCOMER Like ME

#### rahul701

##### Banned
can u give OPTION EXAMPLE IN DETAIL ( ALL Taxes ) Buy and Sell IF any web pages in which can be useful to a NEWCOMER Like ME
indi007 there is nothing complicated abt options bkg , it simply depends upon ur broker and how much u negotiate with him.
For HDFC its (100 + 13) or 1% of total option contract whichever is higher.
Like if u buy IFCI [email protected] => total contract value is 10*4000 = 40000 and its 1% is 400 so u pay 400 + service tax which will be around 40-60 Rs. Whereas if u buy IFCI [email protected] => total contract value is 8000 and its 1% = 80 and hence u pay the larger of 2 i.e 100+13 = 113

Note for HDFC bkg charges r fixed but with others they r negotiable..
Thanks...