The following example is calculated taking into consideration intraday brokerage rate as 0.03% for buying and 0.03% for selling.

Please note - Currently our intraday brokerage charges are 0.03% for buying and 0.03% for selling,

If you are interested to open the trading and demat account then please visit at

http://www.daytradingshares.com/demat_account_opening.html

Suppose Trader bought Bharati Airtel at Rs.380 and quantity 100 so the total amount trader has to pay is Rs.380 x 100 = Rs.38,000.

Let’s see how to calculate the brokerage and taxes.

The buying amount is Rs.38,000 (Rs.380x100 Qty shares)

Brokerage charges

0.03% as brokerage on 38,000 comes to Rs.11.40

Now let’s calculate the Brokerage and Taxes on selling amount

So the trader got the profit of Rs 100.

Brokerage charges

0.03% brokerage on 38,100, comes to Rs.11.43

Service Tax

STT (Service Transaction Tax) is only on selling amount. The STT is 0.025%.

The selling amount is 38,100, the STT comes to Rs.9.52.

If traders follow a simple strategy called “Take small profits and do multiple trades” which is explained in following example, the traders can easily double money in a single year. That is 10% per month equals 120% per year, which is more than double.

Let’s take the following example

Taxes to pay for intraday trading

2. The STT (Security Transaction Tax) is 0.025% only on selling amount.

3. The Stamp duty on total turnover for a day which is 0.002%.

4. and finally you have to pay Regulatory charges on total turnover for a day which is 0.004%

No need to worry about these taxes as all these taxes will add up to very small amount at the end of the day compared to intraday profits. Let’s see how in following sub sections

Total charges the trader has to pay on selling amount is = Brokerage + service tax + STT

= Rs.11.43 + Rs.1.18 + Rs.9.52

=**Rs.22.13**

__Total amount you have to pay on buying and selling is (including Brokerage and taxes) __

= Rs.12.6 (buying) + Rs.22.13 (selling)

=**Rs.34.73**

__Also you have to pay stamp duty and regulatory charges on total turnover.__

__Rate__ - The stamp duty on total turnover for a day is 0.002% and Regulatory charges are 0.004%.

Stamp duty and regulatory charges are applied on total turnover of a day.

The total turnover is calculated by adding the buying and selling amount happened throughout the day.

In above example the Buying amount is 38,000 and selling amount is 38,100 which adds up to Rs. 76,100

Stamp duty is 0.002% and Regulatory charges are 0.004% which adds up to 0.006%

So on total turnover amount of Rs. 76,200 and the stamp duty and regulatory charges on that comes to Rs__4.57__

= Rs.11.43 + Rs.1.18 + Rs.9.52

=

= Rs.12.6 (buying) + Rs.22.13 (selling)

=

The total turnover is calculated by adding the buying and selling amount happened throughout the day.

In above example the Buying amount is 38,000 and selling amount is 38,100 which adds up to Rs. 76,100

Stamp duty is 0.002% and Regulatory charges are 0.004% which adds up to 0.006%

So on total turnover amount of Rs. 76,200 and the stamp duty and regulatory charges on that comes to Rs

So, let’s take 20 days for calculation.

Per day Rs 240 profit then for 20 days it comes to Rs 4800 by investing Rs 38,000

Let’s consider only 10% profit per month and

So the annually the returns will come to 12 months x 10% profit = 120%

New comes to share market can start trading by small amount like Rs 5000 or 10,000 and earn and once this provides experience then further move can be made.

The conclusion is forgetting the "Greed Factor and Taking Small Profits" will make miracle to your Trading profits.

Without investment a single rupee the trading can be practiced using paper trading, for paper trading practice please

www.daytradingshares.com takes no responsibility for any investment decisions based on recommendations provided on website.

Financial contents like Technical charts, historical charts and quotes are taken from NSE and Yahoo sites.

Note - All quotes are delayed by 15 minutes and unless specified.

Google Adsense Ads are posted on every page of the website so visitors clicking on Ads and going to those links and carrying any financial deal is not at all related to www.daytradingshares.com and any financial deal should be done on their own sole responsibility.

Please read at

Copyright © 2012 DayTradingShares.com. All Rights Reserved

Welcome to Indian Share Market

Your Desire to Earn

So the total amount you have to pay for the trade of buying 100 shares of Bharati Airtel at Rs 480 and selling them at Rs 481 comes to

**Rs 34.73 +4.57 **(stamp and regulatory charges)** = **__39.30__ which includes brokerage charges and other all taxes.

Conclusion

The conclusion is, the trader paid Rs.39.30 (brokerage and taxes) while the profit earned is Rs.100.

**So the Net profit is Rs 60.7 (**Rs 100 - Rs 39.3)

Rs 60.7 profit is earned by the trader in single trade by investing Rs 38,000

If the trader makes only 5 trades in a day then very big amount adds up at the end of the month.

And this strategy is called as do multiple trades and takes small profits.

Important note - Rs 1 movement in share price of Rs 300 to Rs 500 happens very easily for many times in a day. So select higher price shares for day trading so that you can take small profits and do multiple trades.

It is quite possible to get Rs 1 profit for Rs 380 share price compared to Rs 50 or Rs 100 share price. So take share price in the rage of Rs 300 to Rs 500 for trading.

Conclusion

The conclusion is, the trader paid Rs.39.30 (brokerage and taxes) while the profit earned is Rs.100.

Rs 60.7 profit is earned by the trader in single trade by investing Rs 38,000

If the trader makes only 5 trades in a day then very big amount adds up at the end of the month.

And this strategy is called as do multiple trades and takes small profits.

Important note - Rs 1 movement in share price of Rs 300 to Rs 500 happens very easily for many times in a day. So select higher price shares for day trading so that you can take small profits and do multiple trades.

But new comers should be very careful, after getting months of experience and profits the trader can double the buying quantities. Day trading is very risky for inexperienced traders.

Margin amount is the extra amount given by the broker to trade for a day.

Margin amount varies from broker to broker but generally broker provides 3 to 4 times margin amount.

We advice do not to use margin amount.