Cost-Saving Trading Tips , Add Yours in the Comments

[Patel_6]

I thought it would be useful to start a thread where we can share practical trading tips that help save money, reduce costs, or improve execution. Here are a few of mine ,

1. Consider deep ITM options or synthetic futures instead of futures where appropriate. Depending on the liquidity, this can sometimes result in significantly lower STT compared to holding future.

2. If u r considering taking delivery of a stock, enter as an intraday position first. If ur view changes during the day, you can exit as an intraday trade and pay much lower STT. Only convert the position to delivery near market close if you still want to hold it overnight.

3. Avoid MTF for stocks that are available in the FnO segment (assuming you need a sufficiently large position size). In many cases, futures can be a more cost-effective alternative than MTF.

These are just a few observations from my experience. If u have any similar tips that help save costs, improve execution then please share them in the comments.

[RupeeRiser]

@Patel_6

synthetic futures instead of futures where appropriate. Depending on the liquidity, this can sometimes result in significantly lower STT compared to holding future.

Significant Cost Savings from Using SYNTHETIC FUTURES.

[SpacemanSpiff]

@Patel_6

If u r considering taking delivery of a stock, enter as an intraday position first. If ur view changes during the day, you can exit as an intraday trade and pay much lower STT. Only convert the position to delivery near market close if you still want to hold it overnight.

You can exit CNC position intraday too, and it will be taxed as intraday.

[Patel_6]

Oh, I wasn’t aware of that. I always thought the tax treatment depended on whether you entered the position as CNC or intraday. But I guess what really matters is whether the shares are actually transferred and taken into delivery.