The trading done in stock market in the time interval of one day is termed as intra-day trading. This, terminology is used to explain the highs and lows in securities. It is important for traders who want to earn money in a single trading session. The cost associated with buying and selling shares is complicated and confusing to say the least. There are many costs associated with intraday trading and they are as follows:
Broking cost:
It is the commission charged by a broker belonging to, the relationship house you are dealing with. The rate includes commission for intraday trade and delivery. The rates may vary from .05% of intraday and .5% of delivery to .01% of intraday to .10% of delivery. Thus, as you can see this cost is negotiable so you must be on your toes while fixing it. All you need is a little luck.
Securities transaction tax (STT):
It is, asked on the sales/ purchase of securities by, the investors. Moreover, this tax is, charged on the, total lump. It is, charged in the form of Equity delivery transactions, equity intraday transactions, future transactions and option transactions.
Equity delivery transactions:
Purchase: 0.125% of Number of Shares * Price i.e. turnover
Sell: 0.125% of Number of Shares * Price i.e. turnover
Equity Intra-day Transactions:
Purchase: 0 (NIL)
Sell: 0.025% of Number of Shares * Price i.e. turnover
Future Transactions:
Purchase: 0 (NIL)
Sell: 0.017% of Number of Lots * Lot Size * Price i.e. turnover
Option Transactions:
Purchase: NIL
At, the, time of purchase of, options. However, the investor has to pay 0.125% of the Number of Lots * Lot Size * Strike Price, that is settling price. As far as option, exercise is concerned
Sell: 0.017% of Premium
SEBI Turnover charges:
The sum is zero as far as equity transactions are concerned, but it is amounted to .0002% for derivative transactions. The required calculations are as follows:
Equity delivery transactions:
Purchase: 0(nil)
Sell: 0(nil)
Equity intra-day transactions:
Purchase: 0(nil)
Sell: 0(nil)
Future Transactions:
Purchase: .002% of Number of Lots * Lot Size * Price i.e. turnover
Sell .002% of Number of Lots * Lot Size * Price i.e. turnover
Option transactions:
Purchase:.002% of premium.
Sell: .002% of notional value in case of exercise or assignment
Exchange Transaction charges:
There is a slight difference in the transaction charges from BSE to NSE.
Equity Delivery Transactions:
Purchase: 0.0035% of turnover in NSE and 0.0034% of Turnover in BSE
Sell: 0.0035% of turnover in NSE and 0.0034% of Turnover in BSE
Equity Intra-day Transactions:
Purchase: 0.0035% of Turnover in NSE and 0.0034% of Turnover in BSE
Sell: 0.0035% of Turnover in NSE and 0.0034% of Turnover in BSE
Future Transactions:
Purchase: 0.002% of Number of Lots * Lot Size * Price i.e. turnover
Sell: 0.002% of Number of Lots * Lot Size * Price i.e. turnover
Option Transactions:
Purchase: 0.05% of Premium
Sell: 0.05% of Premium
Stamp Duty:
The calculation of charges incurred with it are as follows:
Equity Delivery Transactions
Purchase: 0.01% of Turnover. Turnover usually taken in multiple of Rs 5000
Sell: 0.01% of Turnover. Turnover usually taken in multiple of Rs 5000
Equity Intra-day Transactions
Purchase: 0.002% of Turnover. Turnover usually taken in multiple of Rs 5000
Sell: 0.002% of Turnover. Turnover usually taken in multiple of Rs 5000
Future Transactions
Purchase: 0.002% of Turnover. Turnover usually taken in multiple of Rs 5000
Sell: 0.002% of Turnover. Turnover usually taken in multiple of Rs 5000
Option Transactions
Purchase: 0.002% of Premium
Sell: 0.002% of Notional Value in case of exercise or assignment
Service Tax:
It is applicable le only on brokerage and no service tax is applicable on 10.3%.
Mathematically, trading cost is equal to brokerage in addition with STT, stamp duty and other charges.
One should keep these costs in mind while dealing with intraday stock market trading.
