Calculations of Profits and Losses and other charges


How are the various charges (SEBI, brokerage etc) charged from the Profits (or Losses) made from Trades?

Assuming I had taken positions in 10 different option contracts with different strike prices (and attributes MIS or NRML), after exiting the contract, (or all the contracts), the different contracts are represented in the Portfolio tab in kite mobile app (different contracts all exited within the same day)

For each contract, do we have to key in the information in the brokerage calculator and add up the profits for all the profit making trades and add all the losses for the loss making trades and the net result is the “Profit/Loss”, right?

In the link the SEBI fee, Zerodha brokerage and other charges are factored in.

Query-- 1

Do I need to keep in mind or factor other charges? Like for an Option contract if its done and exited intraday there is a buy leg and sale leg-- two transactions amounting to 40 on the brokerage side.

The number of positions (options bought and sold are 10 for assumption sake) so the brokerage charge is 440, right?

But I guess if the orders are more, they are taken into consideration whilst computing the brokerage, right?

Can anyone throw some light on this method/manner of computation? Is it right?

Are there other turnover charges or something?

Thanks a ton.

When using the Brokerage Calculator you just have enter Buy Value Sell Value and Quantity, all the charges and P&L will be automatically calculated.

To get to know what charges are levied you can check this.

Brokerage is charged on per order, if you have executed 10 buy and 10 sell orders, this adds up to 20 orders.

Thanks sir.

Using the hyperlink provided by Zerodha I had computed the profit of each trade and loss, and the resulting net profit/loss. However, in the link when we key in the relevant information, the brokerage of Zerodha is 20 (irrespective of Quantity), so…

the total number of exited orders *20 (in Portfolio in Kite app)= x amount

the total number of completed orders in kite app* 20= y amount

y-x= net amount.

this net amount needs to be deducted from my overall net profit/loss, right, sir?

Apologies on using the variables and making it bit complicated maybe.

You will have to add the brokerage for both Buy and Sell orders.

Eg. You executed 10 buy orders, brokerage will be Rs. 20 * 10 = 200 and you executed 10 sell orders, brokerage Rs. 20 * 10 = 200. Total brokerage will be Rs. 400, which you will have to deduct from your P&L.

No issues :slightly_smiling_face:

Yes sir. I understood. Thanks.

The number of order executed in Kite mobile or web app constitute the brokerage. I had calculated some details from the link above (which I had provided) wherein there is a redundant computation of the brokerage charges which need to be leaved. (Since anyways the total number of buy orders+sell orders multiplied by 20 constitutes the brokerage which needs to be deducted from the P and L ledger)