A contract is basically an agreement between two parties creating a legal obligation for both of them to perform specific acts. In order for the contract to be enforceable, each party must exchange something of value (called “consideration”).
Shorting, or short-selling, is when an investor borrows shares and immediately sells them, hoping he or she can scoop them up later at a lower price, return them to the lender and pocket the difference. But shorting is much riskier than buying stocks, or what's known as taking a long position.
E-contract is any kind of contract formed in the course of e-commerce by the interaction of two or more individuals using electronic means, such as e-mail, the interaction of an individual with an electronic agent, such as a computer program, or the interaction of at least two electronic agents that are programmed to
Transaction Charges:
Transaction charges are charged on both sides of the trading and are same for both intraday & delivery. National stock exchange (NSE) charges a transaction fee of 0.00325% of the total amount. Bombay stock exchange (BSE) charges a transaction fee of 0.00275% on total amount.Just to give you an idea: Full service brokers charge a percentage based brokerage rate i.e 0.3% to 0.5% of your trade value for equity delivery segment. At the same time, discount stock brokers charge a flat rate brokerage (INR 10, INR 20 etc) irrespective of your trade value.
The exchange transaction charge is calculated on the transaction value of the trade. For example, if you buy shares worth of Rs 1,00,000 in equity delivery transaction, you pay Rs 3.35 (0.0035%) Exchange txn charge in addition to the brokerage and other taxes.
A derivative is a contract between two or more parties whose value is based on an agreed-upon underlying financial asset (like a security) or set of assets (like an index). Common underlying instruments include bonds, commodities, currencies, interest rates, market indexes, and stocks.
Zerodha Margin Calculator is an online tool which will help you calculate Exposure provided by Zerodha for different segments like Intraday, Delivery, F&O, Currency & Commodity.
| Zerodha Exposure / Leverage |
|---|
| Equity Delivery | Upto 3x |
|---|
| Equity Intraday | Upto 14x |
| Equity Futures | Upto 7x |
| Equity Options | Upto 10x |
What is the brokerage at Zerodha for equity?
| Charges | Equity Delivery | Equity Intraday |
|---|
| Transaction charges | NSE: 0.00325% BSE: 0.003% per trade | NSE: 0.00325% BSE: 0.003% per trade |
| GST | 18% on (brokerage + transaction charges) | 18% on (brokerage + transaction charges) |
| Sebi charges | Rs. 10 / crore | Rs. 10 / crore |
Rs 20 or 0.01%/0.1% whichever is lower
The brokerage charges are the same if you trade equities (intraday), F&O, commodities or currencies, which is a maximum of Rs 20 per executed order (0.01%/0.1% or Rs 20 whichever is lower).Securities/Commodities transaction tax: Tax by the government when transacting on the exchanges. Charged as below on both buy and sell sides when trading equity delivery. When trading at Zerodha STT/CTT can be a lot more than the brokerage we charge.
STT will be Rs. 100 on the Buy side calculated at 0.1% on Rs. 1000*100*0.1%=Rs. In case of short term capital gains, a tax of 15% is applicable and in case of long term capital gains, the tax rate is 0% i.e. long terms capital gains is exempt from tax for transactions where STT is paid.
Profit calculation for intraday. Simple method for intraday profit calculation is, Just add both the total buy and sell value, and make 0.04℅ of it, that will be your all brokerage charges etc.
YES, If you buy CNC ( delivery ) and sell the shares the same day only intraday brokerage charges apply, Also, If you buy CNC ( delivery ) and sell the next day only intraday brokerage charges apply, BUT, If you buy CNC ( delivery ) and sell the third day then CNC Delivery brokerage charges apply.
It is possible to buy and sell stock in the same day; in fact, some people use this strategy to earn a living. Buying stock at the beginning of the day and selling that same stock later in the day is often called a round trip. Investors who continuously buy and sell stock in the same day are called day traders.
Be cautious when you are selling short intraday (selling without delivery). If you sell the shares and do not square it off intraday, then it will result in short delivery and go into exchange auction. Such auction can result in huge losses to you. When you are trading intraday, always stick to liquid stocks.
Settlement is the delivery of stock against the full payment that must take place within three business days after the trade. You can sell the purchased stock before the settlement — daytraders do it all the time — provided that you do not violate the free ride rule.
You can not avoid DP charges, as DP charges are levied by depository itself on selling of shares from your demat account. The additional charges are charged by the broker (depository participant).
If you sell shares on T1 or T2 or after that, it will be considered as delivery trade. So all charges will be same. So if this happens and you sell your shares on T1, you might receive penalty for short delivery. Selling shares on T1 is termed as BTST.
Stock trades are free for Zerodha users who hold their shares for longer than a day. The firm makes money from fees on futures, options and intraday equity transactions, which cost a maximum 20 rupees. Kamath says he now sits atop a family fortune of at least 5 billion rupees, excluding his stake in Zerodha.
T1 shares are those shares that you've bought but the delivery of such shares is pending meaning it hasn't come to your demat account.
Square off is one of the trading method used by the Intraday traders when they buy a stock and later sells in a single day to make profit. Delivery is a trading style in which a trader buys a stock and holds it for a period of time and waits for a right time to sell the stock to make good profit.
A contract that facilitates the purchase or sale of an underlier at a fixed price on a future date.
Value of Supply = (Monetary Consideration + In-kind Consideration) - GST on Total Consideration Note: The value of supply includes cess, billable expenses, subsidies, penalties, and all taxes except GST (and any other charges that may or may not be included in the price of the goods and services supplied).
A future is a right and an obligation to buy or sell an underlying stock (or other assets) at a predetermined price and deliverable at a predetermined time. Options are a right without an obligation to buy or sell equity or index. A call option is a right to buy while a put option is a right to sell.
Equity options are a form of derivative used exclusively to trade shares as the underlying asset. They offer the trader the right, but not the obligation, to purchase (or sell) a set amount of shares at a certain level (referred to as the 'strike price') before it expires.
The STT tax is levied on transactions performed on recognised stock exchanges. It is applicable to products such as shares, bonds, debentures, derivatives. CTT is levied on exchange-traded commodities. As of now, the tax is on non-agricultural commodities at the rate 0.01% that is to be paid by the seller.
Zerodha offers it's online Mutual Funds investment services to a platform name Coin. Zerodha Coin has a website and a mobile app, available for free to charge to all Zerodha customers. Mutual fund investment with Zerodha is absolutely free.
A Clearing Member (CM) of NSE Clearing has the responsibility of clearing and settlement of all deals executed by Trading Members (TM) on NSE, who clear and settle such deals through them. Only funds settlement is allowed at present in Index as well as Stock futures and options contracts.
An equity share, commonly referred to as ordinary share also represents the form of fractional or part ownership in which a shareholder, as a fractional owner, undertakes the maximum entrepreneurial risk associated with a business venture. The holders of such shares are members of the company and have voting rights.
Kite Connect is a set of REST-like HTTP APIs that expose many capabilities required to build a complete stock market investment and trading platform.
