Settlement Method: Physically settled.<\/p>\n\n\n\n
STT (Securities Transaction Tax): Charged on exercised contracts at a rate of 0.125% of the intrinsic value (how much in-the-money the option is), i.e., intrinsic value * quantity.<\/p>\n\n\n\n
Brokerage: Charged on both the buy and sell sides.<\/p>\n\n\n\n
Out-of-The-Money (OTM) Stock Options Contracts:<\/strong><\/p>\n\n\n\n Outcome: Expire worthlessly.<\/p>\n\n\n\n Loss: The entire premium paid is lost.<\/p>\n\n\n\n Brokerage: Charged only on the buy side.<\/p>\n\n\n\n Index Options:<\/strong><\/p>\n\n\n\n Settlement Method: Cash-settled.<\/p>\n\n\n\n If Bought:<\/strong><\/p>\n\n\n\n ITM Contracts: STT is charged on exercised contracts at 0.125% of intrinsic value, and brokerage is charged on both sides.<\/p>\n\n\n\n OTM Contracts: Expire worthlessly, and brokerage is charged only on the buy side.<\/p>\n\n\n\n If Shorted or Sold:<\/strong><\/p>\n\n\n\n STT: Charged only on the sell side when initiating the short.<\/p>\n\n\n\n STT Impact on Expiry: None.<\/p>\n\n\n\n Premiums: Received are kept by the trader, depending on the moneyness of the option contract.<\/p>\n\n\n\n <\/p>","protected":false},"excerpt":{"rendered":" In-The-Money (ITM) Stock Options Contracts: Settlement Method: Physically settled. STT (Securities Transaction Tax): Charged on exercised contracts at a rate of 0.125% of the intrinsic value (how much in-the-money the option is), i.e., intrinsic value * quantity. Brokerage: Charged on both the buy and sell sides. Out-of-The-Money (OTM) Stock Options Contracts: Outcome: Expire worthlessly. Loss: […]<\/p>","protected":false},"author":1,"featured_media":0,"parent":11303,"menu_order":23,"comment_status":"closed","ping_status":"closed","template":"","doc_tag":[],"acf":[],"_links":{"self":[{"href":"https:\/\/faq.tradejini.com\/wp-json\/wp\/v2\/docs\/11342"}],"collection":[{"href":"https:\/\/faq.tradejini.com\/wp-json\/wp\/v2\/docs"}],"about":[{"href":"https:\/\/faq.tradejini.com\/wp-json\/wp\/v2\/types\/docs"}],"author":[{"embeddable":true,"href":"https:\/\/faq.tradejini.com\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/faq.tradejini.com\/wp-json\/wp\/v2\/comments?post=11342"}],"version-history":[{"count":0,"href":"https:\/\/faq.tradejini.com\/wp-json\/wp\/v2\/docs\/11342\/revisions"}],"up":[{"embeddable":true,"href":"https:\/\/faq.tradejini.com\/wp-json\/wp\/v2\/docs\/11303"}],"wp:attachment":[{"href":"https:\/\/faq.tradejini.com\/wp-json\/wp\/v2\/media?parent=11342"}],"wp:term":[{"taxonomy":"doc_tag","embeddable":true,"href":"https:\/\/faq.tradejini.com\/wp-json\/wp\/v2\/doc_tag?post=11342"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}