What are the costs involved in trading Options?

When you trade options, you may incur several charges, including:

  • Option Premium: Paid to buy the option.
  • Brokerage fees: Charged by your broker.
  • Securities Transaction Tax (STT): Exchange Transaction Charges
  • Goods and Services Tax (GST): 18% on brokerage and transaction charges
  • SEBI turnover charges: 0.0001% (₹10 per crore of turnover) in future & Options
  • Stamp duty: as per the regulations of the respective state

Note: Costs may vary slightly depending on the broker and exchange.