Hello All,
Hope you are all enjoying the weekend and the IPL!
I am trying to understand how to accurately interpret my currency contract note for a particular day:
I basically bought and sold the same call option contract on the same day in a span of 5:30 hours. As can be seen the difference in the price of the contract during that time was ₹0.04, and accordingly for the lot of 1000 contracts, I made ₹40.
However, here is where I get confused:
The row underlined in red tells me that the brokerage charged (I am ignoring the part that says “Taxable value of supply” and am going by what is in the bracket) was ₹40. I am further taking this to mean that the platform charged me ₹20 for buying the contract and ₹20 for selling the contract. Is this understanding correct?
If this is the case, then I am not sure why this is the case, since the stated brokerage for F&O in currencies is ₹20 or 0.03% whichever is lower. For the buy transaction, for example, the transaction value is ₹190=0.19x1000 (contract pricexlot size) and 0.03% of this is ₹0.057.
I would love to understand how the brokerage charges came to ₹40 for the day.
Thanks.