Opening account

General
1


1. How do i open only future and option account from kolkata?

2. What are the fees?

3. In zerodha brokerage calculator option section "stt charge and total transaction charges" are showing very high. can anyone please explain? i have attached a photo copy.please have a look at it.

Because stt is 0.017% on premium on sale side.Transaction charge is nse:0.053% on premium .

so if i sell 1 lot of nifty call at 8550.i will receive premium as 2375..so stt will be (2375*0.017)/100=0.40

AND TRASACTION CHARGE SHOULD BE (2375*2*0.053)/100 =2.5175.

please correct me if i am wrong..

 if not please explain the brokerage calculation in the picture given....

2

I will explain from the snapshot you have shown.

Buy Price = 100, Sell Price = 101, Lot size = 2000

Case 1: Buying and Selling

Brokerage:

Turnover > 2 lakhs for buy and Turnover >2 lakhs for sell (more than 2 lakhs is one lot size, fixed by NSE)

Turnover = (Strike price+premium)*lot size for Call options

Turnover = (Strike price - premium) * lotsize for put options

Brokerage = 0.01% or 20% whichever is lower

Anyhow this turover will be more than 4 lakhs in total so brokerage of 20+20 = 40 rupees will be applied, irrespective of whatever option you are buying and selling

STT

STT is 0.017% on Premium on sell side only

Sell side Premium = 101 x 2000 = 202000

STT = 0.017 * 202000 / 100 = 34.34

Transaction Charges

This is 0.053% on Total Premium for NSE

Buy Premium = 100 x 2000 = 200000

Sell Premium = 202000 (we already know)

Total Premium = 200000+202000=402000

Transaction Charges = 0.053 * 402000 / 100 = 213.06

Service Tax

12% on Brok+Transaction Charges = 12 * (40+213.06) / 100 = 30.37

ESS and HESS, I think you can figure out, 2% and 1% on service tax

Sebi charges

Rs.20/crore or 0.0002% on Total Premium = 402000*0.0002/100 = 0.80

Case 2: Only Selling/ Option Writing

Put a zero in buy price.

Since the turnover is now only around 2 lakhs, your brokerage will be only 20 rupees and not 40 rupees

Remaining all values, you just put zero for Buy Premium, you will get the values.

3

premium means what you receive if you write an option.in case of nifty call option which i added it is around (Total=100*25) = 2500… as then why the premium is calculated as sale side turnover for stt charge or total turnover for transaction charge…please explain.
Value of taxable securities transaction relating to an “option in securities” shall be the option premium, in case of sale of an option in securities.
Value of taxable securities transaction relating to an “option in securities” shall be the settlement price, in case of sale of an option in securities, where option is exercised.
The following procedure is adopted by the Exchange in respect of the calculation and collection of STT:
STT is applicable on all sell transactions for both futures and option contracts.
For the purpose of STT, each futures trade is valued at the actual traded price and option trade is valued at premium. On this value, the STT rate as prescribed is applied to determine the STT liability.
“For the purpose of STT, each futures trade is valued at the actual traded price and option trade is valued at premium” this quote is taken from nse stt chare rule book.please check…

4

---------maxdas0
premium means what you receive if you write an option.in case of nifty call option which i added it is around (Total=100*25) = 2500…
----------------AastroGuru
Yup, you are right 2500 is the premium you receive, when Nifty call option is sold 100 rs premium per unit.
In the snapshot you have shown it shows 101 as sale price and for 2000 units, the premium received by you would become 2,02,000.
I agree with you.
----------maxdas0
as then why the premium is calculated as sale side turnover for stt charge or total turnover for transaction charge…please explain.
---- Aastroguru
Premium is calculated like what you said above and not like the contract turnover (contract turnover is applicable only for brokerage). For all other charges like STT, Transaction charges etc, only Premium is considered.
So in your case 2500 is sale premium, so STT = 2500x 0.017/100 = 0.425 rupees is STT.
Transaction charge will be = (0+2500) x 0.053/100 = 1.325 rupees
You should note one point here, STT is applied only when Selling Option Contracts. Not for buying.
But Transaction charges is applicable for both during buying and selling.
That is why STT is only on Sale Side Premium, and Transaction charges will be applied on sale side premium (while selling) and buy side premium (while buying).
--------maxdas0

[quote]
this quote is taken from nse stt chare rule book.please check…
------- Aastroguru
Yeah, I have gone through that, so what’s your question, everything seems fine with my above answer,