What are the STT charges if option positions get exercised?

What are the STT charges if option positions get exercised?

Below are the charges :

·  Stock Option Bought + Exercised: In this scenario, where you buy a stock option and then exercise it, you're charged 0.2 % of the intrinsic value of the option.

·  Stock Option Short: When you short a stock option (i.e., sell it), you're charged 0.1 % of the premium. Additionally, if the position expires, there is no Securities Transaction Tax (STT) applied.

·  Index Option Bought (ITM): For in-the-money (ITM) index options that are bought and subsequently exercised, you're charged 0.2 % of the intrinsic value of the option.

·   Index Option Bought (OTM): For out-of-the-money (OTM) index options that are bought, there is no STT being charged.

·   Index Option Short: When you short an index option and sell it, STT is charged only on the sell side. There is no STT impact on expiry.

These charges vary based on the type of option (stock or index), whether it's bought or sold, and whether it's in-the-money or out-of-the-money. It's essential to understand these charges and how they apply to your specific trading activities to effectively manage your costs and risks.



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