why options trading confusing

looser89

looser89

Active Member
#1
#1
I am newbie in option trading. I have some confusion regarding options trading. I want to know the brokerage charges is on strike price or on premium price for eg Tatamot300pe at premium 7 .what will be the stt and brokerage. what will be breakeven price. I am trading in nse now
 
josh1

josh1

Well-Known Member
#2
#2
looser89 said:
I am newbie in option trading. I have some confusion regarding options trading. I want to know the brokerage charges is on strike price or on premium price for eg Tatamot300pe at premium 7 .what will be the stt and brokerage. what will be breakeven price. I am trading in nse now
Click to expand...
Brokers charge different brokerage rates. There is a thread on cheapest brokerage. Look into it.
 
Placebo

Placebo

Well-Known Member
#3
#3
looser89 said:
I am newbie in option trading. I have some confusion regarding options trading. I want to know the brokerage charges is on strike price or on premium price for eg Tatamot300pe at premium 7 .what will be the stt and brokerage. what will be breakeven price. I am trading in nse now
Click to expand...
The quantity of TATAMOTORS options by default is 1000. So 1000 * 7 = 7000 which is the initial cost you have to pay upfront to purchase the option. You brokerage will be calculated on 7000 RS. I don't know what your brokerage charges are so can't calculate any further.

Cheers
 
looser89

looser89

Active Member
#4
#4
Placebo said:
The quantity of TATAMOTORS options by default is 1000. So 1000 * 7 = 7000 which is the initial cost you have to pay upfront to purchase the option. You brokerage will be calculated on 7000 RS. I don't know what your brokerage charges are so can't calculate any further.

Cheers
Click to expand...
it means brokerage charge only on premium. it have no relationship with strike price. is str also charge on premium price .my brokerage is 1paisa what will be brokerage
 
Placebo

Placebo

Well-Known Member
#5
#5
looser89 said:
it means brokerage charge only on premium. it have no relationship with strike price. is str also charge on premium price .my brokerage is 1paisa what will be brokerage
Click to expand...
Yes it has nothing to do with strike price. Here your brokerage should be 70 Rs on the first side.

Cheers
 
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