Bought my first set of shares

[cooldude.7010]

Today I bought my first set of shares. However I have a few doubts and would like to clear them.

I use Geojit as my stockbroker.

I bought JP associates for a total worth of Rs.24540 while I was charged Rs.122.7 as brokerage which turns out to be 0.5%. I placed a limit buy order.

My question is,
1. Is the brokerage amount correct since geojit advertises brokerage charges of 0.1% - 0.3%.

2. The trade is placed under Intra-day under the portfolio section. Will it be transferred to my normal Stock holdings if i dont close out hte postion by the end of the day.

3. What is BTST ? What is the advantage of using it ?

Answers are highly appreciated.


Regards,
K/D.

 

[cooldude.7010]

Just realized that for the first Qn., there is a difference in time before the Shares are delivered to my demat account and that is the reason why i am not able to see in the "stocks in hand" portion.

But can someone explain the reasons for Qn.1 and Qn.3 ?
Thanks.

 

[d_s_ramesh]

Your amount shows it to be correct and that is what is charged by the brokers all over. When you have bought shares, it automatically gets transferred to your DP account until you sell it. But, if you short sell, you need to cover it before the days closing of the market.

BTST is BUY TODAY SELL TOMORROW. This gives advantage between prices at the time of closing and the next days open. There are few traders who are regulars in this.

 

[cooldude.7010]

Your amount shows it to be correct and that is what is charged by the brokers all over. When you have bought shares, it automatically gets transferred to your DP account until you sell it. But, if you short sell, you need to cover it before the days closing of the market.

BTST is BUY TODAY SELL TOMORROW. This gives advantage between prices at the time of closing and the next days open. There are few traders who are regulars in this.

Thanks for your reply. THe brokerage whcih i am charged, is it for Buy ? or is it for both buy/sell ? Jus tto make sure it includes all other transaction charges right ?


-Thanks
K/D

 

[sadiq]

Today I bought my first set of shares. However I have a few doubts and would like to clear them.

I use Geojit as my stockbroker.

I bought JP associates for a total worth of Rs.24540 while I was charged Rs.122.7 as brokerage which turns out to be 0.5%. I placed a limit buy order.

My question is,
1. Is the brokerage amount correct since geojit advertises brokerage charges of 0.1% - 0.3%.

2. The trade is placed under Intra-day under the portfolio section. Will it be transferred to my normal Stock holdings if i dont close out hte postion by the end of the day.

3. What is BTST ? What is the advantage of using it ?

Answers are highly appreciated.


Regards,
K/D.

I suggest to you that we need to buy only when whole mass is selling shares with great discount .. you can easily get clue like Finance minister will step in to assure the health of market .. even you can notice some bad news like so and so lakhs of crores vanished in the market etc ..
and we need to sell when every one buying. again u will notice news like some lakhs of crores market added to it in a single day etc ,
for this prepare to wait even for a year for entry and another one or two years for exit.
then it is possible to multiple money .
The other way is just do paper trading / investment for one year from now since you dont know terms like BTST etc ..
sorry if it seems to harsh .

 

[d_s_ramesh]

Knowledge is a process, no child comes is full grown up when it arrives. Every one learns on the journey. Let's us teach the novice, not discourage them.

Brokerage you have paid is for one side, on selling too the same will charged. On selling there are possibilities of it being a little higher if sold next day or after taking delivery. That too depends on the Demat a/c you are holding. There are some inter settlement Beneficiary charges charged at Rs. 15/- per scrip on selling.

After you first transaction you will know more details. But, keep cool, you have taken a great step, learning continues. Observe every experience you gain, that is real time knowledge, no one can teach you and it is exclusively for you alone.

 

[cooldude.7010]

Knowledge is a process, no child comes is full grown up when it arrives. Every one learns on the journey. Let's us teach the novice, not discourage them.

Brokerage you have paid is for one side, on selling too the same will charged. On selling there are possibilities of it being a little higher if sold next day or after taking delivery. That too depends on the Demat a/c you are holding. There are some inter settlement Beneficiary charges charged at Rs. 15/- per scrip on selling.

After you first transaction you will know more details. But, keep cool, you have taken a great step, learning continues. Observe every experience you gain, that is real time knowledge, no one can teach you and it is exclusively for you alone.

Thanks a lot sir for you direction and words.

 

[sadiq]

Knowledge is a process, no child comes is full grown up when it arrives. Every one learns on the journey. Let's us teach the novice, not discourage them.

Brokerage you have paid is for one side, on selling too the same will charged. On selling there are possibilities of it being a little higher if sold next day or after taking delivery. That too depends on the Demat a/c you are holding. There are some inter settlement Beneficiary charges charged at Rs. 15/- per scrip on selling.

After you first transaction you will know more details. But, keep cool, you have taken a great step, learning continues. Observe every experience you gain, that is real time knowledge, no one can teach you and it is exclusively for you alone.

you are absolutely correct. novice need to be taught as no child come in full form . First know the rules and play and DONOT play for knowing rules.

 

[d_s_ramesh]

Real time trading teaches us more than paper trading and in the same way learning, while trading is excellent. That's how I learnt. New things keep coming regularly.

We are used to trading from the outcry system was existent in the markets. Now most of the traders do not know what it is. The same way those days BTST was not available, as and when things got introduced we learnt and started using the available methods.

Earlier we had badla and weekly settlements, all those are history today. Adjusting to the prevailing situation is the excellent way of this wonderful human life on Mother Earth.

 

[cooldude.7010]

Sir, I have on more qn about the Buying power. A scrutiny of my porfolio holdings shows the following

Cash Position: 43861.54
Intra-day     : 43861.54
Mutual Fund : 25344.04
BTST          : 25344.04

Stocks in Hand: 

JPASSOCIAT , AvgRate: 123.28, Qty=200, MktVal=24690.00

Initially I had 50,000 as Cash before buying anything.

While 50,000-123.28*200 = 25344.04

I wanted to know how the excess buying power of 18517.5 (43861.54-25344.04) was arrived. I understand the excess buying power is the additional amount provided by the broker according to the margin ratio over the available stocks in hand. So shouldn't it be 50% * (25344.04) = 12672.02 ?


A look at Geojit's margin info gives me the following :

Margin Ratios

Margin Ratio: 50:50
Maintenance margin/ Call Margin: 40 %
Liquidation Margin: 30 %

Can you please enlighten me how the excess capital was arrived ? Thanks