Avoid Paying Excess STT On Options Expiry
Avoid Paying Excess STT On Options Expiry

One fine day, Mr. X was holding an ITM (in-the- money) Call Option which he bought a few days ago and his position was going to expire on the same day. He was happy that he’d make handsome profit on the trade and he hence didn’t square off the position assuming it would get expired by end of the day. However, in the evening he received a contract note from his broker leaving him shocked for making a loss on his trade. He immediately called his broker in anxiety to know about the suffered losses and was informed that due to STT (Securities Transaction Tax) his actual profits turned into losses.

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