Turnover under F&O Trading

Hi,

Can anyone please describe the logic behind calculating Turnover in F&O trading.
Replies (4)
Quick Summary
This discussion clarifies the calculation of turnover in Futures & Options (F&O) trading. Unlike traditional business sales, F&O turnover is calculated differently due to the high value of each lot. The formula involves the sum of positive and negative trade differences per script, excluding negative differences, plus any premium received from selling options. The query also seeks to understand how exercised options are accounted for in this calculation.

In normal business turnover is based on sales and thus reaching the limit takes time. But in F&O it reached easily as each lot is valued high, Limit is reached easily, hence..

Turnover is equal to total of positive and negative difference trade/scrip wise ignoring negative difference plus premium received if you sell option.

Thank you
Originally posted by : CA. Umesh kumar

Turnover is equal to total of positive and negative difference trade/scrip wise ignoring negative difference plus premium received if you sell option.

How is exercised option taken into account? Same as sold option? Thanks!

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