Dhan is one of the many online brokers that allow you to trade options. Here, we have discussed the options trading features and charges of this company.
Dhan Charges
The brokerage charged by Dhan for each buy or sell order irrespective of the lot size is Rs 20 only but there are a few other charges that would be levied on your trades. The charges are STT, exchange transaction tax, and GST. If you place 10 buy and sell orders, you will have to pay a brokerage of Rs 400 to Dhan. You will also have to pay a GST of 72 Rs. The STT fees depend on the selling price of the instrument. For example, if the price of the instrument is 40000, the STT would be Rs 10 i.e. 0.025% of 40000. You can use the Dhan brokerage calculator for more information on the various fees you have to pay for trading stock market instruments.
0.025% STT is charged on each order. Exchange Transaction Tax is the lowest fee you have to pay. Making money from Options trading is very difficult. You should place orders only after doing some research to make sure that you earn money from the broker and the stock market and not vice versa.
Dhan Bracket order
Dhan supports the following types of orders:
- Market, limit.
- Trigger and bracket.
The platform allows you to set a default order type. While creating a bracket order, you have to set the target and stop-loss price. Some brokers offer 4x, 5x margin for buying options through bracket order. Dhan doesn’t offer leverage for purchasing options.
What to buy?
Dhan homepage has a section called Invest/Trade on Stock Exchanges. In this section, you will find an icon with the text CE/PE. If you click this icon, the broker will display these filters – most active, OI gainers, OI losers, price gainers, price losers, etc, and a list of instruments. If you move the mouse cursor on an instrument, the web application will show buy, sell, and more buttons. It also displays a three-vertical dots menu icon that reveals four buttons when clicked. Some of the buttons are – set price alert and forever order.
Dhan Forever order
Forever order is a unique feature of Dhan. When it is active, this order would be sent to the exchanges every time, and the price of the stock is equal to the trigger price. Forever order’s validity is 1 year.
Dhan Options trader
A separate tool running on the subdomain of dhan.co, Options Trader, has been built only for traders. OT gives users access to a tool called strategy builder. This tool enables users to add instruments to the strategy and see their outcome via a graph in real-time. It supports the following graphs:
- Pay off, P & L table.
- Strategy chart, and multi-strike OI.
If you understand how ratios/spreads work, you must check out the Dhan pre-built strategy section where you will find pre-designed spreads, ratios, etc.
The strategy tool also allows you to find new trading opportunities with the help of its market prediction outlook module. This module shows three buttons – above, below, and between. It also displays a dropdown box to select the expiry date and target. When you enter the expiry date and the target, and click the large “find trading opportunities” button, the module will display instruments you can buy. Before placing any order, you should do your own research to make sure that things go as per your plan.
Another great feature of the Options Trader tool is its live option chain. OC is updated in real-time and shows the “greeks” data of various instruments. You can customize it by hiding or showing the following things:
- LTP change, IV.
- Volume change, active strikes, etc.
You can place a buy or sell order of the supported order types from the options chain itself.
