Upstox - RKSV - Trade in Rs 20 Max

[a1b1trader]

In case of Future trading the total turnover is calculated by multiplying the no of nifty future with NF value like
for 500 NF @ 5900 total turnover is 29,50,000

But how the turnover in case of options is calculated.
Please let me know how the total turnover of a day is calculated for option trading.

For example, what will be the total turnover for this trade.
BUY 500 5800CE @ 115.00
BUY 500 5900CE @ 50.00
SELL 200 5900CE @ 60.00

Thanks

 

[RKSV]

In case of Future trading the total turnover is calculated by multiplying the no of nifty future with NF value like
for 500 NF @ 5900 total turnover is 29,50,000

But how the turnover in case of options is calculated.
Please let me know how the total turnover of a day is calculated for option trading.

For example, what will be the total turnover for this trade.
BUY 500 5800CE @ 115.00
BUY 500 5900CE @ 50.00
SELL 200 5900CE @ 60.00

Thanks

There are two types of value -- notional and premium.

Notional = 500 * 5800 + 500 * 5900 + 200 * 5900 = 70,30,000.
Premium = 500 * 115 + 500 * 50 + 200 * 60 = 94,500.

Key to note is that statutory charges are levied on the premium amount (STT, Clearing, Transaction Charges, Cess, etc...) not the notional amount (except in the case of exercising the option when you don't square up your position on expiry).

So when you notice that, on 1 cr of turnover of options, the statutory charges seem to be much higher than on 1 cr of turnover on futures, also remember that you must buy/sell a lot of options to hit the 1 cr premium turnover.

 

[a1b1trader]

There are two types of value -- notional and premium.

Notional = 500 * 5800 + 500 * 5900 + 200 * 5900 = 70,30,000.
Premium = 500 * 115 + 500 * 50 + 200 * 60 = 94,500.

Key to note is that statutory charges are levied on the premium amount (STT, Clearing, Transaction Charges, Cess, etc...) not the notional amount (except in the case of exercising the option when you don't square up your position on expiry).

So when you notice that, on 1 cr of turnover of options, the statutory charges seem to be much higher than on 1 cr of turnover on futures, also remember that you must buy/sell a lot of options to hit the 1 cr premium turnover.

Many thanks for the reply.
A question arises
Whether all other statutory charges will be different in the 2 cases, one when the trade was squared off before expiry and other when trade being in ITM and not squared off.
And will stamp duty be charged differently as well.
What will be the rate of stamp duty in these two cases.
Thanks

 

[roguetrader]

Hello RKSV,
Your NSE NOW mobile application is not working at market hour. This is very bad. Downtime at the time of business hours is not excepted. I had to punch some trades and now because of this downtime, I am suffering losses. I cannot access computer during market hours. What is your take on this? You have taken brokerage for unlimited trading but I was not given option to trade due to this downtime.

 

[RKSV]

Hello RKSV,
Your NSE NOW mobile application is not working at market hour. This is very bad. Downtime at the time of business hours is not excepted. I had to punch some trades and now because of this downtime, I am suffering losses. I cannot access computer during market hours. What is your take on this? You have taken brokerage for unlimited trading but I was not given option to trade due to this downtime.

Hi roguetrader,

Did you check your internet connection on your phone? It may be a problem with NSE NOW but we haven't heard any reports from other clients.

Just an FYI -- the way NSE NOW works is that you connect directly to the NSE. There are no servers at the broker's side (on our end) that act as a middleman. So if the connection is down for you, very likely it's down for every broker and client using NSE NOW.

 

[RKSV]

Many thanks for the reply.
A question arises
Whether all other statutory charges will be different in the 2 cases, one when the trade was squared off before expiry and other when trade being in ITM and not squared off.
And will stamp duty be charged differently as well.
What will be the rate of stamp duty in these two cases.
Thanks

All statutory charges are different in the sense that they will be charged on the notional value and not the premium value if you exercise it (let it expire). Only STT which is normally 0.017% becomes 0.1%. So, generally, try to square off your orders before expiry .

 

[megapixel]

in F&O segment margin required to buy NRML future positions varies in real time during the day ..so technically if you are going to purchase contract , margin required in the morning may not be same as in the afternoon ...right ?

Do you lock margin on real time basis whenever a contract is bought ?

or

Do you lock margin whatever SPAN Margin File says ?

 

[RKSV]

in F&O segment margin required to buy NRML future positions varies in real time during the day ..so technically if you are going to purchase contract , margin required in the morning may not be same as in the afternoon ...right ?

Do you lock margin on real time basis whenever a contract is bought ?

or

Do you lock margin whatever SPAN Margin File says ?

Hi megapixel,

We lock margin on a realtime basis.

 

[megapixel]

Hi RKSV,

When you do NRML BUY and SELL of Stock Future , total traded absolute value (i.e total buy value + total sell value) amounts to Lakhs. However we all know that we don't transact that much value rather transact with small margins.

I'm worried if there is any separate tax needs to pay to IT dept for total traded absolute value at the end of financial year and during IT return filing ?

Can you please enlighten us regarding its implication ?



(N.B: I'm asking this because after every trade I get NSE SMS Alert for total traded absolute value in Lakhs. You know we all use small margins. I'm worried whether there will be any tax implications for such high absolute total traded value at the end of financial year.)

 

[a1b1trader]

For taxation purpose the so called total traded absolute value (i.e total buy value + total sell value) is not taken into account