Do you play the stock market

Safedriver · 14th February 2011, 11:14

Quote:

Originally Posted by SDP

Was trying to understand how Options work. I do understand how Futures work, was trying to co-relate and I am getting confused.
=======================
Can anybody with experience explain this possibly with an example? Or point me to some material which explains this better?

Thanks - SDP

Options give you a wonderful trading opportunity. But in the present volatile markets, you could lose very heavily, if you are not careful. But if you trade with a strict stop-loss, then you could convert all option trades to limited loss and high gains

Check out this link for some great info on options
India Options FAQs >> Learn how to trade options in India >> Call Options >> Put Options

CaliAtenza · 21st February 2011, 07:59

Can PIO's invest in India? I'd love to get into stocks here.

AjiGTI · 21st February 2011, 12:32

No, PIOs are not allowed direct market access. However you can try the SGX nifty (traded in Singapore) or some of the India specific ETFs to participate in Indian markets.

SDP · 21st February 2011, 13:24

Quote:

Originally Posted by Safedriver

Check out this link for some great info on options
India Options FAQs >> Learn how to trade options in India >> Call Options >> Put Options

Safedriver, Thanks for the link. Clarified quite a few doubts.

Everybody, one more doubt. If you are bearish, you buy Puts. My question is: if spot nifty is at 5500, how does one decide which Puts to buy? They are available in 100 point gaps, so you can get 5100 Puts, 5200 Puts, 5300 Puts, 5400, 5500, 5600, 5700 etc etc. So how does one decide which ones to buy? What's the logic?

vamsi.kona · 21st February 2011, 18:45

Quote:

Originally Posted by SDP

Everybody, one more doubt. If you are bearish, you buy Puts. My question is: if spot nifty is at 5500, how does one decide which Puts to buy? They are available in 100 point gaps, so you can get 5100 Puts, 5200 Puts, 5300 Puts, 5400, 5500, 5600, 5700 etc etc. So how does one decide which ones to buy? What's the logic?

It is a combination of your price target and time target for the given scrip. (Also volatility greatly impacts the appreciation of the option value). In this case what is the level you expect NIFTY to come down to and by what time, say 1 week, month or more. If you expect NIFTY to come down to 5000 by the end March then you may buy 5100 Put of say April expiry to be on safer side.

Generally Options are more profitable when you purchase them out-of-money and become in-the-money by the time you sell. This is the most basic way of dealing with options. As you go deeper, there are many strategies which use a combination of options to make profits.

SDP · 24th February 2011, 16:01

Thanks vamsi.kona. Your explanation is logical and does help.

What's a good brokerage for Options? I am currently getting 50 Rs per lot (for each side of the transaction) from IndiaBulls. Somehow I have a feeling that this is on the higher side.

Safedriver · 7th March 2011, 22:59

Quote:

Originally Posted by SDP

What's a good brokerage for Options? I am currently getting 50 Rs per lot (for each side of the transaction) from IndiaBulls. Somehow I have a feeling that this is on the higher side.

I am with Zerodha, they have an amazing brokerage of Rs.20/- per executed trade, which works out to be cost-effective. Trading is through NSE's NOW terminal.

JMaruru · 9th March 2011, 12:57

I am being charged around 1% as brokerage(including taxes) per cash trade in ICICIDirect (Say for example Rs. 400/- for Total Sale/Buy consideration of Rs. 40,000/-). Is this a good deal? If not, please suggest other stock brokers and their brokerages.

Thanks.

ghodlur · 9th March 2011, 13:01

Quote:

Originally Posted by JMaruru

I am being charged around 1% as brokerage(including taxes) per cash trade in ICICIDirect (Say for example Rs. 400/- for Total Sale/Buy consideration of Rs. 40,000/-). Is this a good deal? If not, please suggest other stock brokers and their brokerages.

Thanks.

Try Sharekhan, they charge 0.5% brokerage. However their AMC is around 400/-

JMaruru · 9th March 2011, 13:04

Quote:

Originally Posted by ghodlur

Try Sharekhan, they charge 0.5% brokerage. However their AMC is around 400/-

Does sharekhan brokerage include taxes as it is with ICICIDirect?

SDP · 9th March 2011, 13:40

Quote:

Originally Posted by JMaruru

I am being charged around 1% as brokerage(including taxes) per cash trade in ICICIDirect (Say for example Rs. 400/- for Total Sale/Buy consideration of Rs. 40,000/-). Is this a good deal? If not, please suggest other stock brokers and their brokerages.

Thanks.

Diff brokerages 'package' their charges differently. You should be aware of what are the diff heads under which charges are deducted when you trade.
As per my understanding the various heads are:
Brokerage
Service tax on brokerage
Security Transaction Tax (STT)
Stamp Duty
Sebi Turnover Tax
Transaction Charges
Service Tax on transaction charges

I do not worry about any of the charges besides the basic brokerage as there is not much that can be done about the rest.

On the brokerage front, for cash based delivery transactions, something like 0.25% is a good brokerage, 0.50% is somewhat average and 1% is daylight robbery

Please note that the above mentioned rates are 'per side' of the transaction.

ghodlur · 9th March 2011, 13:40

Quote:

Originally Posted by JMaruru

Does sharekhan brokerage include taxes as it is with ICICIDirect?

No I was just referring to the commission charged by Sharekhan, rest of the taxes would be as applicable for the transaction.

For intraday transaction Sharekhan charges 0.1% commission. Hope this helps.

carboy · 9th March 2011, 13:49

Quote:

Originally Posted by JMaruru

I am being charged around 1% as brokerage(including taxes) per cash trade in ICICIDirect (Say for example Rs. 400/- for Total Sale/Buy consideration of Rs. 40,000/-). Is this a good deal? If not, please suggest other stock brokers and their brokerages.

Thanks.

I think ICICIDirect has 2 plans.

- Flat brokerage of 0.55% in Delivery irrespective of Turnover
- Brokerage ranges from 0.25%-0.75% for Delivery

If you aren't doing huge amount of buying selling (10 Lakhs+ in a year), you should chose the flat plan where you get a 0.55% brokerage.
You can change your plan online.

vahss_11 · 9th March 2011, 17:20

try skyes and ray equities, get o.1o% as cash delivery.

JMaruru · 9th March 2011, 19:50

Quote:

Originally Posted by ghodlur

No I was just referring to the commission charged by Sharekhan, rest of the taxes would be as applicable for the transaction.

For intraday transaction Sharekhan charges 0.1% commission. Hope this helps.

Thank You.

Quote:

Originally Posted by carboy

I think ICICIDirect has 2 plans.

- Flat brokerage of 0.55% in Delivery irrespective of Turnover
- Brokerage ranges from 0.25%-0.75% for Delivery

If you aren't doing huge amount of buying selling (10 Lakhs+ in a year), you should chose the flat plan where you get a 0.55% brokerage.
You can change your plan online.

I opted for I-Secure plan as it is efficient if the transactions are less than 50 Lakhs/Year. I did not even know about these plans.

Thank You.

Quote:

Originally Posted by vahss_11

try skyes and ray equities, get o.1o% as cash delivery.

Thank You.

View Poll Results: Stocks as a percentage of my net assets are -
0 - 25% -- I'm like the most conservative Indians. I love FDs.	396	32.25%
26 - 50% -- I have a few stocks.	550	44.79%
51 - 75% -- I'm an active trader.	201	16.37%
76 - 100% -- Hey, I'm an i-banker!!!	81	6.60%
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21st February 2011, 07:59	#1832
CaliAtenza BHPian Join Date: Feb 2004 Location: LAX-SNA-BFL-BLR Posts: 321 Thanked: 18 Times	Re: Do you play the stock market Can PIO's invest in India? I'd love to get into stocks here.
	() Thanks

21st February 2011, 12:32	#1833
AjiGTI BHPian Join Date: Dec 2010 Location: Gandhinagar Posts: 54 Thanked: 36 Times	Re: Do you play the stock market No, PIOs are not allowed direct market access. However you can try the SGX nifty (traded in Singapore) or some of the India specific ETFs to participate in Indian markets.
	() Thanks

24th February 2011, 16:01	#1836
SDP Team-BHP Support Join Date: Jan 2010 Location: Mumbai Posts: 4,737 Thanked: 11,279 Times	Re: Do you play the stock market Thanks vamsi.kona. Your explanation is logical and does help. What's a good brokerage for Options? I am currently getting 50 Rs per lot (for each side of the transaction) from IndiaBulls. Somehow I have a feeling that this is on the higher side.
	() Thanks

9th March 2011, 12:57	#1838
JMaruru BHPian Join Date: Jun 2008 Location: BLR/EWR Posts: 780 Thanked: 368 Times	Re: Brokerage(Including Taxes) in ICICIDirect? I am being charged around 1% as brokerage(including taxes) per cash trade in ICICIDirect (Say for example Rs. 400/- for Total Sale/Buy consideration of Rs. 40,000/-). Is this a good deal? If not, please suggest other stock brokers and their brokerages. Thanks. Last edited by JMaruru : 9th March 2011 at 13:00.
	() Thanks

9th March 2011, 17:20	#1844
vahss_11 BHPian Join Date: Aug 2004 Location: Thane(Mumbai) Posts: 118 Thanked: 8 Times	Re: Do you play the stock market try skyes and ray equities, get o.1o% as cash delivery.
	() Thanks