InvestorQ : When I trade intraday is brokerage my only cost in the market?
Abhisha Yadav made post

When I trade intraday is brokerage my only cost in the market?

Answer
image
Abhisha Yadav answered.
3 years ago
Follow

Brokerage is an important cost but it is only one of the costs. When you trade intraday, there are many more obvious costs and not-so-obvious costs involve. There are other costs like Securities Transaction Tax (STT), Goods & Services Tax (GST), stamp duty, turnover tax, exchange charges etc. When you add up all these costs you get the total cost of your intraday trade. You must first put down this total cost and then simulate your break-even price of the intraday trade. Lower the cost, lower your break-even level. The breakeven point is important to know as it determines how much of risk you can take either ways.

Intraday brokerage charges are much lower but they are only applicable in case you close the trade intraday. You can also choose to convert the intraday trade into a delivery trade but in that case the normal delivery brokerage will apply in your case. You can use the brokerage calculators to get a clear picture of trading break-even.

1 Views