This article aims to demonstrate the importance of contract notes and their role in trading. It is crucial to learn how to read a Contract Note. This document contains all information about trades that were made on a particular day.
Contract notes are records of all trades that were successful on a given day. It is legal proof that a particular individual's transactions are documented.
These components make up each contract note:
Look at the meanings of each column.
This column shows the unique numbers that Exchanges assign to certain Orders or Trades.
This page highlights the exact moment that an investor placed an Order on the Exchange.
This column includes the time an investor's trade was executed successfully on the Exchange.
Example: Let's say that the current price for Reliance Equity (Last traded price) is Rs 2,000. At 10:01:05 AM, you placed a Buy order (Limit price) for Rs 1,995. Your order was successfully executed at 10:30:27 AM. Your Trade Time is 10:30:27 am
This refers to the stock/contract name that was traded.
Simple - This refers to the type order that an investor has placed.
This is the stock that an investor trades in. Negative (-) numbers are for Sell Orders.
This rate shows the price at which an investor's order was executed on Exchange.
Brokerage is charged for each trade listed in Table 2 - Order specific details
Because brokerage charges are separately mentioned, the Net Rate per unit is equal to the Gross Rate per unit.
This rate is only applicable to derivative trades. It represents the closing price of a particular contract for the day.
This is the amount before any additional charges are added.
The 1 st Table provides detailed information, but the next table Orderwise Details is designed to give you a quick summary of your trades and the brokerage.
The last table lists the levies and taxes that have been charged. Let's have a look at these.
This column contains information about the Exchange and segments that have been traded.
Example - Capital : The Exchange refers to NSE, while Capital refers the Equity Segment
This is the net total before brokerage (Table 1) and net total before Levies (Table 2).
This is the direct tax that the broker collects from every trade on the Exchange and pays to the Exchange. STT can be levied on buying and selling equity delivery as well as on intraday and F&O sales.
Taxable Value of Supply = Total brokerage + exchange transaction charges + SEBI Turnover fees.
If you're from Maharashtra, CGST+ SGST will be charged. The rest of the country will be subject to IGST (Interstate GST)/UGST(Union Territory GST).
This is a Government Levy that applies to the transfer of securities such as shares, debentures and futures and options.
If applicable, these charges will be levied on you.
More information on Charges & Levies – Please visit our Transaction Charges page.
After all levies, charges and taxes, the Net Total.
If you need to find Charges related to DP, Auto Square-Off and Call-n-Trade as well as Delayed Payment, MTF Interest or AMC Fees, refer to your Ledger Report.
Contract notes give investors a summary and overview of trades they made on a specific day. These trades are accompanied by an overview of their losses and profits. Electronic contract notes can be downloaded with a digital signature.
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