Why Did My Trade Lose Money?
Many beginners buy a stock, see the price go up by ₹1, and sell it thinking they made a profit. Then they check their ledger the next day and see a loss. This is because they forgot to account for STT and DP Charges.
- Zero Brokerage Trap: Even if your broker charges ₹0 for Delivery trades, the government charges a massive 0.1% Securities Transaction Tax (STT) on both the buy and sell sides.
- The DP Charge: Whenever you sell shares from your Demat account, the depository (CDSL/NSDL) charges a flat fee of ~₹15.93 per scrip, regardless of whether you sell 1 share or 10,000 shares.