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What is a Contract Note?
A contract note is an account of the total trades made on a particular day and acts as legal /official proof of transactions in offline or online trading. When you define contract note, you mean it to have the following parts:
  • The order and number of the trade undertaken.
  • The order and time of the trade executed.
  • The name and symbol of the traded. Commodity
  • Action Carried Out : Buy or Sell
  • The price of the trade, with the quantity traded.
  • Any charges that were levied - brokerage fees and charges.
  • The net amount that the trade yielded - payable or receivable.

What Purpose Does a Contract Note Serve?
What is a contract note in Commodity Market terms? If you know the purpose for which a contract note is generated, you will understand its importance better. The contract note serves a purpose for the reasons mentioned below:
  • A contract note serves to confirm all the trades that are executed by an investor or a trader on any given date.
  • A contract note is generated when traders undertake online/offline
  • Trading and the total amount of brokerage charged is determined.
  • The net amount that is payable or receivable is made clear.

What is Contract Note for Shares?
Contract notes are generated for the transactions involving trading in Commodity. When you read a contract note, you will discover a number of columns that exhibit the finer details of the trades executed on a specific date. There will be a list of columns and these will be numbered. The following are the key sections of an actual contract note when Commodity are traded:
  • Buy and Sell - This means the type of order placed by a trader/investor.
  • Quantity Transacted - This means the amount of commodity traded in. Positive amounts are stated as orders placed to buy and negative amounts mean those which are sold.
  • Per Unit Gross Rate - This is the rate/price at which the order was executed.
  • Per Unit Brokerage - Every trade has a brokerage charge/fee.

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