I hardly came across the person who has earned in this Market and made properties save & except a few like Jhunjhunwala. The Biz requires a high level patience, otherwise forget about earning, even, you will be seemed to have lost what had prior to putting into the trade.
He bought options that Nifty will close above 8,600 and it closed at 8,602.75. Gupta bought all the Nifty lots (3,000) he could in the short span of time. Formula for STT on Exercised options on Expiry of Options (Strike Price Premium * Quantity ) * 0.125 % 3000*75 = 225000 (8600 2.75)*225000 * 0.125 % 1260618750 * 0.125 % Rs= 15,75,773.00
Re: Gupta's mistake
by agrawal sumit on Jul 01, 2017 07:38 PM
The Correct calculation is: Contract Value is(3000*75*8602.75= 1,935,618,750 If you let the option to expire (Meaning if you do not square off your position by 3:30pm)then the STT applicable is 0.125% of the contract value. Thus, 1,935,618,750*0.125% = Rs.24,19,523
He bought options that Nifty will close above 8,600 and it closed at 8,602.75. Gupta bought all the Nifty lots (3,000) he could in the short span of time. Formula for STT on Exercised options on Expiry of Options (Strike Price Premium * Quantity ) * 0.125 % 3000*75 = 225000 (8600 2.75)*225000 * 0.125 % 1260618750 * 0.125 % Rs= 15,75,773.00
You definitely lose principle amount, peace if you trade in stock market. Brokers get their commission on your buy or sell. If you are keen in investing in shares it should be for long term 1/2/3/5 years. Invest only 10%of your money in shares. Rest you invest in FDs, Mutual funds, PPF and postal schemes. There is assurance of getting about 9% yearly income. Invest 50000 in one A group share and deposit same amount in PPF and see returns on both.
You definitely lose principle amount, peace if you trade in stock market. Brokers get their commission on your buy or sell. If you are keen in investing in shares it should be for long term 1/2/3/5 years. Invest only 10%of your money in shares. Rest you invest in FDs, Mutual funds, PPF and postal schemes. There is assurance of getting about 9% yearly income. Invest 50000 in one A group share and deposit same amount in PPF and see returns on both.