5.11Example of intraday profit and loss
1What is it?
Let’s work through a winning trade and a losing trade, including charges.
2Why does it exist?
Seeing real arithmetic shows how charges and leverage matter.
3Diagram
Win (net)
₹1,120
Loss (net)
₹-1,580
4Calculation
Net P&L = (Sell − Buy) × Qty − Charges
- You have ₹20,000 margin and buy 100 shares at ₹1,000 = ₹1,00,000 (5× leverage).
- Win: sell at ₹1,012 → gross profit = ₹12 × 100 = ₹1,200.
- Approx. charges: brokerage ₹40, STT 0.025% × ₹1,01,200 ≈ ₹25, exchange + GST + stamp ≈ ₹15 → total ≈ ₹80.
- Net profit ≈ ₹1,120 → +5.6% on your ₹20,000.
- Loss: sell at ₹985 → gross loss = ₹15 × 100 = ₹1,500; plus ≈ ₹80 charges → net loss ≈ ₹1,580 → −7.9%.
A 1.5% price fall cost you nearly 8% of your capital in one day. (Hypothetical.)
5Quick revision
- Leverage magnifies both outcomes.
- Charges matter on every trade.
- Use stop-losses always.
6Knowledge check
Q1. 50 shares bought at ₹400, sold at ₹410 intraday. Gross profit?Show answer
₹500.
Q2. Why does a 1.5% move cost ~8% here?Show answer
Because of 5× leverage.
Q3. Do charges apply even on losing trades?Show answer
Yes.