A contract note is a confirmation of all your trades done on a particular day. Whenever you trade, a contract note will be sent to your registered email ID within 24 hrs. This is as per the format prescribed by the Securities and Exchange Board of India (SEBI).

A contract note is broadly divided into three parts:

1. User information
2. Trade information
3. Charges

User Information:

This contains basic information such as the date for which this contract note was created, the trading code, user's name, and other details.

Trade information:

All the trade-related information will be shown here. Here are some important points you need to pay attention to:

• When you enter a single order and multiple trades happen at different prices, then there will be multiple entries in the contract note
• Brokerage is calculated per order, not per trade. In the contract note, it is grouped and displayed at the end. See how brokerage is calculated
• Net rate and the gross rate will be same as brokerage charges are shown as a separate entry
• The total amount that is due by the user (per trade) is shown in the 'Net Total' column. Sell values are shown as negative (-) and buy values are shown as positive (+).
• Remarks - Additional information about the position is given here. You can know whether it is a carry-forward position or a brought-forward position. This is applicable for derivatives trades only.
• B/F - Brought forward: This is an accounting terminology which is used to calculate the marked-to-market (MTM) value of the future. Its calculation is based on the last trading day's closing price of the scrip.
• C/F - Carry forward. This is an accounting terminology which is used to calculate the marked-to-market value (MTM) of the future. Its calculation is based on that day's closing price of the scrip.
• Closing rate is applicable only for derivatives. It is basically the rate at which the scrip has closed that day.
• In the end, pay-in and pay-out obligations, along with the brokerage fees, minus applicable charges, are displayed.

Charges:

This section has all the charges a user has to pay for the orders placed in the selected segment for a particular day. The charges can be broadly categorised into:

1. Transaction charges:

This includes the:

• Securities/Commodities transaction taxes (STT/CTT)
• Exchange and clearing transaction charges
• Stamp duty
• SEBI fees

2. Margin:

• Exposure margin
• Span margin

You can use our Brokerage Calculator to calculate the brokerage and other charges levied for individual orders.

3. GST:

• 18% GST is applicable on brokerage and other charges for all users.

Note:

Special charges like Account opening fees, Demat annual maintenance charges, Auto square-off charges, fines, MTF interest, fund transfer charges for net banking, and call-n-trade charges etc. will not be shown in the contract note. Please check the ledger for such charges.