Calculate Brokerage

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Calculate your profit in Nifty trading
The following step shows how to calculate the brokerage and taxes in nifty futures and how profits are generated. The amount required to trade in one lot of nifty is Rs.25,000 (approx) and if you plan to trade in mini nifty lot then the amount required is Rs.14,000 (approx). This amount is called as margin amount. So traders require only margin amount to buy and sell Nifty future contract. Now let’s see the taxes calculation and how profits are generated Suppose if you buy one nifty lot. One nifty lot consists of 50 nifty quantities so the amount required to buy the one lot of nifty is the margin amount and not the full amount. The full amount becomes = 50 nifty Qty x 4800 (Nifty contract current price) So the full amount is = 2,40,000. But you only need the margin amount to buy one lot of nifty. = you bought one nifty lot, which will cost = 50 nifty qty x current nifty contract price = 50 x 4800 = 2,40,000 The brokerage calculation on Buying Amount The brokerage is 0.03 paisa for buying and 0.03 paisa for selling (it is the brokerage rate offered with our demat account) = so the brokerage for buying one nifty lot is = Rs.2,40,000 x 0.03/100 = Rs.72 The Taxes calculation on Buying Amount In addition to brokerage, the trader has to pay the taxes to Government 1. Service Tax (ST) = 10.36% - ST is applicable only on brokerage. It applies on both buying & selling brokerage. 2. Regulatory charges + stamp duty charges = total comes to = 0.004%. Applicable to both buying and selling amount. 1. Service Tax is calculated only on brokerage - It is 10.36% In our above example, the brokerage has come to Rs.72 = 72 x 10.36/100 = Rs.7.45 2. Regulatory charges and stamp duty charges - comes to total 0.004%. The buying amount is 2,40,000 = 2,40,000 x 0.004/100 = Rs.9.60 So the total Taxes you have to pay on buying amount is Rs 7.45 + 9.6 = 17.05 Now the total amount you have to pay to broker including the brokerage & taxes for buying one nifty lot is Brokerage = Rs.72 Total Taxes = Rs.17.05 Total amount comes to Rs.89.05

Profit’s generated on One Nifty lot
According to our strategy we ask our traders to book 10 to 15 points profit. 1) If you take 10 points profit then your profit will be Rs 500 per lot and 2) If you take 15 points profit then your profit will be Rs 750 per lot. The brokerage calculation on Selling Amount = Brokerage is 0.03% on selling amount = the selling amount is 4820 x 50 (one nifty lot) = 2,41,000 = Brokerage is 2,41,000 x 0.03/100 = Rs.72.30 The Taxes calculation on Selling Amount In addition to brokerage, the trader has to pay the taxes to Government 1. Service Tax (ST) = 10.36% - ST is applicable only on brokerage. It applies on both buying & selling brokerage. 2. STT (Security Transaction Tax) = 0.017% - STT is applicable only on selling amount. 3. Regulatory charges + stamp duty charges = total comes to = 0.004% = Applicable to both buying and selling amount. Service Tax calculation (ST) ST is 10.36% ST is calculated on brokerage charge and the brokerage on selling amount is Rs.72.30 = 72.30 x 10.36/100 = Rs.7.46 Security Transaction Tax (STT) It is only applied on selling amount = 0.017% The selling amount is 2,41,000 So 2,41,000 x 0.017/100 = Rs.40.97 Regulatory and stamp duty charges are 0.004% The selling amount is 2,41,000 So 2,41,000 x 0.004/100 = Rs. 9.64 So the total Taxes you have to pay on Selling amount is = 7.46+40.97+9.64 = Rs. 58.07 The total amount you have to pay to broker including the brokerage & taxes for Selling one nifty lot is Brokerage = Rs.72.30 Total Taxes = Rs.58.07 Total amount comes to Rs.130.37

Total brokerage and taxes to pay for buying and selling one Nifty Future contract comes to
The buying and selling brokerage + buying and selling taxes Which comes to, Buying amount including taxes and brokerage comes to = Rs.89.05 Selling amount including taxes and brokerage comes to = Rs.130.37 So total amount comes to Rs.219.42

Your Net profit
1) If take profit of 10 points for one nifty lot then it comes to quantity) and after deducting the total charges of Rs.219.42, 280.58 for one lot. 2) If take profit of 15 points for one nifty lot then it comes to quantity) and after deducting the total charges of Rs.219.42, 530.58 for one lot. Rs 500 per lot (Rs 10 x 50 your net profit comes to Rs Rs 750 per lot (Rs 15 x 50 your net profit comes to Rs

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