Options Brokerage Calculator
Options brokerage calculator is useful to calculate brokerage along with applicable taxes like Turnover/Transaction taxes, STT (Security Transaction Tax), SEBI Tax, Stamp duty, Service tax etc., Options Brokerage calculator can also be used to find out the break even points required for particular stock or nifty.
Updated for increased service tax @ 14.50% wef 15 Nov 2015
Please select a stock or index from available list from the drop down box in the above calculator. Lot size will be automatically updated as per the selection of the stock or nifty or index. The list of stocks, indices are updated on 07 May 2015.
After selecting the stock from the drop down box, enter buy price and sell price of the options (either call or put). If both buy and sell price of the options are same, then total charges paid (Brokerage, service tax, sebi tax, turn over / transaction charges, stamp duty) are the loss from the trade.
Enter No of lots to be traded or traded to calculate applicable options brokerage calculation. Enter the brokerage charged by your broker for trading in options (Brokerage on options is charged as a fixed price unlike for futures which is charged as a percentage of the trade value). This options brokerage calculator supports brokerage charged as a fixed price per lot. Some brokers charge brokerage on single leg (For example Angel Broking Limited charges brokerage only on the first leg of the trade, either buy or sell and the second leg of transaction executed on the same day will be free of brokerage). If you pay brokerage on both legs, then no need to change brokerage in other places. But if you pay brokerage only on single leg, change brokerage on top right side. You can put zero (0) in one field and leave other field with original brokerage value.
Charges and taxes on options traded in recognized stock exchanges are very less as the charges and taxes are levied only on the premium value as long as they are exercised by the trader before expiry of the options or before assigned to the trader. If exchange exercises the option contract, then the STT (Securities Transaction Tax) will be a huge burden as it is charged at a rate of 0.125% on the value of Lotsize*stock/index value. Where as for options squared off by trader during trading hours, STT is calculated only on premium value and it is at a low rate of 0.01% (Notice one zero before 1).
We have executed a real trade to show the difference of the above two scenarios and you can see the proof and calculation at STT Calculation for Options Square off on expiry.
This Options Brokerage calculator may not be suitable for all the traders as different brokers, charge differently for trading in options. You are advised to please cross check your contract notes while using this calculator. It is provided as a guidance for traders to understand approximate charges they need to pay and the break even points required while trading in options.
Options trading is a highly leveraged trading activity and is not suitable for all traders. There is a chance of losing all the money invested (and may need to pay more then invested in some cases).