Saturday, 11 November 2017

Use of Brokerage Calculators in Market Trading

The idea of investing is to make money in a short time. Though you have many options such as real estate, you make the real money on the foreign exchange market. The use of an investment broker is as much a necessity as is the use of their brokerage calculators. These are online calculators given to help you understand what the expense is and what you can expect in return.

Calculate different brokerage values 

Many of the brokerage calculators help you calculate the Equity Options Brokerage, Equity Futures Brokerage, Equity Intraday Brokerage, Equity Delivery Brokerage, Currency Futures, and Currency Options. You can also calculate the tax using the Brokerage Calculator. You will get an idea of the savings, earnings, and profitable zones when you trade. The brokerage calculators also indicate the amount of money you save by using the calculator of that broking house. 

The investor is a trader who invests his money through a broker. The broker offers the trader the margin and the trading platform for making the trades. The features on the trading platform vary according to the choice of the trading house.  You can use any one of the trading house brokerage companies to make your trade.

Check the margin

When you choose a trading house over the others, you check how much of margin they offer. This is a kind of loan that the broker gives to the trader. The leverage is between 10 and 20 times in margin account. If you get 20x leverage, which is the best you can hope for in India for intraday trading. You may increase the margin by using advanced orders like bracket orders and cover orders in the Equity segment. When you choose other segments such as currency and commodities or Futures and Option, the choice of your stop loss will make the difference. 

The Bracket Order is a type of order which allows you in a new position along with a target/exit and includes a stop loss order. When your main order undergoes execution, the system places two more orders dealing with the stop loss and the profit taking. If any of these two orders is executed, the other gets cancelled. The trailing stop loss is an option you have when you place the bracket order. The Brokerage Calculator shows you the figures of expenses fees charges of various broking houses side-by-side so you can understand which one is well-suited for your purpose. 

Choose a trailing stop loss

You can place a fixed stop loss as you do in the normal course of affairs. But, when you place the trailing stop loss, it moves in the go up/down depending on whether you are long or short when the stock moves in your direction for a couple of ticks. 

The Margin Calculator helps you when make your portfolio. It shows you how much of capital you need to build the portfolio you have in mind. By using the margin calculator, you can segregate the margin types needed. This will include VaR, exposure, SPAN, Net Premium, and ELM.


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