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PROFIT sucker -Brokerage

Thursday, August 20, 2009 | Labels: | |

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PROFIT sucker -Brokerage

We do hard  trading to make more profit. Those profit fulfill our daily needs and make us more free
form financial crisis. You  have to pay our hard earn money to broker.

Who is Broker?
Broker is a party that mediates between a buyer and a seller.
Brokerage is right of your brokering firm. They provide you platform to trade. They provide you their support for margin trading. (This definition is not professional one, it is for understanding for our reader)

What you pay when you do trading?  We do many trade in trading session. End of the trading session, when square of our all position. we have to pay ;
brokerage  + Service tax + Securities transaction tax

Now
 profit/loss= Earned money in trading-(brokerage  + Service tax + Securities tran.tax)

That means;
If You earn profit ,when you pay all your liabilities (brokerage  + Service tax + Securities transaction tax).  Those liabilities shrink your profit.

 When you goes in loss all those liabilities (brokerage  + Service tax + Securities transaction tax) added in your loss. This liabilities makes loss bigger

Before trading keep in mind how much you have to pay for brokerage. Each firm has it's own style to calculate brokerage . Understand brokerage structure. Then only Do trading.

  • Documentation is important 
Broking firm your daily statement of trading on your address or in your email boxes. If you got hard paper statement, keep documentation updated. Check every figures those provided by your broker. Make note of your trading. Make tally of all transaction.
If  they send you statement by email then make special folder for your daily statement. Analyze it on daily basis. Daily analyze make you aware what goes in your trading account.

Now keep watch on your account daily. Make good profit in trading.

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2 Comments:

  1. kiran says:

    thank you bring this matter to traders..please do you like to tell what will be the acceptable brokarge, and plesae tell us which one is lower brokarge farm thk
    moe power to your blog ,thk

  2. Kuwar says:

    I will come very soon to make clear your point. Good work take sometime to best. Wait for few moment. I will provide good information to all my reader

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