How Is Your Profit/Loss Calculated | Equity Delivery2 min read
Here’s a question for you: You buy Stock X at ₹ 100 & sell it at ₹ 110, have you made a profit of ₹ 10?
Answer: Not quite!
Why? Because there are a few costs an investor must bear for buying/selling in the stock market and it is important to know these! So, what are they?
List of Charges on Delivery Transaction
Below is the list of charges deducted before you get the final profit/loss.
- Charged By Paytm Money
Brokerage: Charged by Paytm Money for facilitating your transaction
Paytm Money charges ONLY ₹ 0.01 in brokerage fees per delivery transaction whether you buy worth ₹ 100, ₹ 1,000 or ₹ 10,00,000 😉
- Charged by changes/Regulators/Govt
- Exchange Turnover Charges: Charged by exchanges (NSE, BSE) on the value of the transactions.
- GST: Tax levied by the Govt on the services.
- Security Transaction Charges (STT): Direct tax levied under STT Act.
- SEBI Turnover Fees: Charge levied by SEBI on each transaction.
- Stamp Duty: Charged by the respective State where the investor resides.
Confused? Don’t worry, we have an simple example for you.
You execute 2 delivery orders
Transaction 1: Buy @ ₹ 100
Transaction 2: Sell @ ₹ 110
Quantity : 1 share
Turnover : ₹100 * 1 share + ₹ 110 * 1 share = ₹ 210
Here’s how you profit/loss will be calculated:
**Does not include platform fees, depository charges, auto square off charges and other fees. Refer to the Account Opening Form for detailed charges and fees.
#Customers residing in Sikkim are exempt from Stamp Duty charges.
Buying at ₹ 100 & selling at ₹ 110 might easily look like a ₹ 10 profit, this is just gross profit, which means the profit before all other transaction charges.
Your actual profit comes out to be ₹ 9.73!
We also have a Brokerage Calculator to help you understand what you will be charged even before making placing a buy/sell order.
Disclaimer: Investment in securities market are subject to market risks, read all the related documents carefully before investing. Brokerage will not exceed the SEBI prescribed limit. Paytm Money Ltd SEBI Reg No. Broking – INZ000240532. NSE (90165), BSE(6707) Regd. Office: 136, 1st Floor, Devika Tower, Nehru Place, Delhi – 110019. Please refer www.paytmmoney.com/stocks/pricing for information on pricing.
