Today is the last day of the year 2015. As per the Budget 2016 announcements, the Share Transaction Levy will not be included in the Transaction Cost from the 1st of January 2016.
The new structure of the Cost is given below:
Based on this the total cost is -/82 cents for every 100.00 rupees. This means that if you buy on a day and sell any day after the cost will be -/82 cents for every 100.00 rupees on both sides. But the most benefited will be when you buy and sell on the same day. Then you will have to pay -/82 cents only for the first side of the buy or the sell only. Most importantly the stocks with smaller values such as under 5.00 or 10.00 will have a bigger % return, as the minimum tick size is -/10 cents. As such if you Buy a stock at 10.00, the cost will be only -/08 cents, and if you sell it at 10.10 on the same day you have a gain of -/02 cents. If you buy a stock worth 5.00 or below, then the gain will be even more attractive in rupee terms. An example of buying and selling within a day is given below:
SIRA 100,000 buy at 4.00 = 400,000.00 + 3280.00 = 403,280.00.
Sell SIRA 100,000 at 4.10 = 410,000.00
Nett Gain = 410,000.00 - 403,280.00 = 6720.00 or 1.67% a day, which works out to a monthly return of 1.67% x 30 days = 50.1%
You need to know that there is always a higher risk when you are wanting an equally higher return. Therefore you need to mange the risk well before executing a Day Trade. If you succeed in the Trade then you will know that you did the trade without physically moving out cash .
Hope you will make use of this opportunity, while it lasts!!!
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