Etrade Options On Futures

How To Trade Futures And Options In India – A Broad Overview on the Brokerage Charges of Online Stock Trading

How To Trade Futures And Options In India

Apart from the ease and convenience of trading, online stock trading offers numerous benefits such as access to real time financial information, live streaming quotes, live charts, technical analysis tools, multiple market watch windows, and fully integrated Back Office. In India, all the major stock trading brokers offer Online Trading in stocks and derivative. HDFC Securities, ICICI Direct, Kotak Securities, Religare Securities, Asit C Mehta Investmentz.com, India Bulls, Geojit, Angel Broking, Motilal Oswal Securities, India Infoline and Reliance Money are few of the big and reputed names on the realm of Online Stock Trading. How To Trade Futures And Options In India

Here is a broad overview on the prevailing brokerage rates in India.

1. Brokerage Rates for Delivery Trades

If you buy a stock with a view to hold on to it for short to long term, the transaction is referred to as Delivery Trade. Brokerage rates for Delivery Trades vary from 0.10% to 0.60% depending upon the volume of transactions, higher the turnover, lower the rates.

2. Brokerage Rates for Margin Trades or Day Trading

When you buy a stock for day trading, that is, square off the position on the same day, the transaction is charged brokerage at much lower rates than delivery trades. The rates for Day-Trading or Intra-Day Trading vary from 0.02% to 0.10% depending upon the volume of transactions, higher the turnover, lower the rates. Some brokers charge brokerage on both the legs buy and sell whereas some charge brokerage only on one leg. How To Trade Futures And Options In India

3. Brokerage Rates for Futures and Options

Futures and Options are the most popular derivative transactions in stock trading. The rates for trading in Futures vary from 0.02% to 0.10% depending upon the volume of transactions, higher the turnover, lower the rates. Some brokers charge brokerage on both the legs buy and sell whereas some charge brokerage only on one leg if you square off the position on the same day. When it comes to Options Trading, most of the brokers charge a flat fee in the range of Rs.50 to Rs.100 per lot per leg, that is, on each side buy and sell.

4. What are the Charges other than Brokerage?

Minimum Brokerage (usually a flat fee per trade or per share), account opening charges, demat charges, software license fees, (one-time or recurring), and Statutory Charges such as STT (Securities Transaction Tax), Service Tax and Education Cess, Exchange Transaction Charges, Stamp Duty and SEBI Turnover Tax

In the End:

In most of the cases, brokerage rates are negotiable and therefore, you should check out with the brokers to find out the exact structure of brokerage rates. Nowadays, many brokers offer advance brokerage schemes, limit card schemes, or fixed subscription plans. However, unless you are an aggressive trader, you will end up paying substantial charges by way of monthly commitment or subscription fees instead of saving the money on brokerage charges. Most of such schemes are nothing but marketing gimmicks to attract the clients. How To Trade Futures And Options In India

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Futures and Options Markets by Carter, Colin A. Edition , 1 $45.95 Futures and Options Markets. Carter, Colin A.

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Advances in Futures and Options Research $196.13 Author: Boyle, Phelim P./ Pennacchi, George/ Ritchken, Peter Series Title: Advances in Futures and Options Research Binding Type: Hardcover Number of Pages: 280 Publication Date: 1999/11/22 Language: English Dimensions: 6.14 x 9.21 x 0.74 inches

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