STT Hike in Budget 2026 – Exact Impact on F&O Traders🔥 What Got Increased

Описание: STT Hike in Budget 2026 – Exact Impact on F&O Traders
🔥 What Got Increased

Futures STT: 0.02% ➝ 0.05% (+150% hike)

Options STT (Sell Premium): 0.10% ➝ 0.15% (+50% hike)

Effective Date: 1 April 2026

🎯 1) Exact Impact on Traders
✅ Futures Traders

STT cost on every sell transaction more than doubles.

Intraday futures scalpers face much higher breakevens.

Hedgers pay more every time they adjust their positions.

Lower net profit in trending days, higher losses on choppy days.

Example:
₹1,00,000 futures turnover

Old STT = ₹20

New STT = ₹50
➝ Cost ↑ by ₹30 per leg

✅ Options Traders

Selling options becomes costlier.

STT is charged on SELL premium, so high-premium days hit more.

Option buyers still pay zero STT on buy side, but when they sell they pay the higher STT.

Example:
Option premium = ₹120, lot size 65

Old STT = ₹7.80

New STT = ₹11.70
➝ Cost ↑ by ~₹4 per lot

Scalpers get hit the most → More STT per small trade.

📉 2) How the Market Will React
🔻 Short-Term Reaction

F&O volumes will drop sharply.

Brokers, exchanges, and prop desks see lower activity.

Index and high-beta stocks may stay under pressure due to:

Lower liquidity

Wider bid-ask spreads

Higher cost of trading

⚠️ Medium Term (2–6 months)

Retail participation will shrink.

Market depth reduces → more slippage.

India VIX may rise slightly due to liquidity stress.

FIIs may shift more to index futures abroad (SGX GIFT).

📈 Long Term

Market stabilizes as:

Traders adapt

Volumes return gradually

Institutions increase hedging volumes despite STT

❓ 3) Should You Quit Indian F&O Markets?

NO — but strategy must change.

⚡ Who should avoid now:

Ultra-high-frequency scalpers

10–20 point Nifty scalpers

1–2 point BankNifty scalpers

Traders with low capital & high churn

🟢 Who still stays unaffected:

Swing traders

Positional traders

Hedged option sellers

Spread traders

Low-churn professionals

👉 F&O will remain profitable for disciplined, lower-frequency traders — not for compulsive intraday churn.
👉 STT hike is painful but not a “quit” scenario — it's a strategy shift scenario.