Budget 2026: F&O Trading Hit
STT Hike Confirmed
- Securities Transaction Tax on Futures rises from 0.02% to 0.05%
- Impacts broking margins and F&O trading volumes
Market Pressure
- BSE, broking stocks face immediate headwinds
- Higher transaction costs curb retail derivatives activity
Key Takeaway: STT tripled on futures squeezes leveraged trades โ brokers, algo players under margin pressure short-term.
STT Hike Confirmed
- Securities Transaction Tax on Futures rises from 0.02% to 0.05%
- Impacts broking margins and F&O trading volumes
Market Pressure
- BSE, broking stocks face immediate headwinds
- Higher transaction costs curb retail derivatives activity
Key Takeaway: STT tripled on futures squeezes leveraged trades โ brokers, algo players under margin pressure short-term.
๐3
*Calling school kids on a Sunday and punishing them for coming to school* ๐๐
#*BUDGET*
๐๐
#*BUDGET*
๐๐
๐7๐คฃ4๐ค3
Future trading will be very difficult. Option still less impact but there will additional cost.
๐3
*The Government of India has increased the Securities Transaction Tax (STT) on derivatives (Futures & Options) in the Union Budget 2026-27.*
This impacts everyone who trades Nifty Futures
๐ Assumptions
Nifty price: 25,000
Lot size: 65
Contract value = 25,000 ร 65 = โน16,25,000
STT applicable on sell side only
๐งฎ NIFTY FUTURES โ STT CALCULATION
๐น Before Budget
STT rate: 0.02%
STT = 0.02% ร 16,25,000
= 0.0002 ร 16,25,000
= โน325
๐น After Budget
STT rate: 0.05%
STT = 0.05% ร 16,25,000
= 0.0005 ร 16,25,000
= โน812.50
๐ Impact per 1 Lot (65 qty)
STT Before - โน325
STT After - โน812.50
Extra Cost - โน487.50
This impacts everyone who trades Nifty Futures
๐ Assumptions
Nifty price: 25,000
Lot size: 65
Contract value = 25,000 ร 65 = โน16,25,000
STT applicable on sell side only
๐งฎ NIFTY FUTURES โ STT CALCULATION
๐น Before Budget
STT rate: 0.02%
STT = 0.02% ร 16,25,000
= 0.0002 ร 16,25,000
= โน325
๐น After Budget
STT rate: 0.05%
STT = 0.05% ร 16,25,000
= 0.0005 ร 16,25,000
= โน812.50
๐ Impact per 1 Lot (65 qty)
STT Before - โน325
STT After - โน812.50
Extra Cost - โน487.50
โค6
The BJPโs rise to power in 2014 was significantly supported by the Indian middle class, which expected economic stability and growth. However, over more than two decades in government, a series of policy decisionsโranging from taxation to compliance burdensโhave gradually placed increasing financial pressure on that very constituency.
๐ฏ5๐3
Banking lifting, IT dragging โ and traders caught in the crossfire.
โค4๐1๐ค1
Success Is Endurance in Disguise
We often think winners are different from losers. This idea challenges that belief beautifully.
Sharing a powerful reflection by James Clear:
The loser has more in common with the winner than with the person sitting on the sidelines.
The winner and the loser each had the courage to try. Both risked embarrassment. Both were willing to face uncertainty. Both were stubborn enough to continue.
Success is endurance in disguise. It belongs to the person who can absorb the losses without absorbing the identity of โloser.โ Itโs the courage to start โ and to stick with it โ that is the real separator. Results tend to find the person who stays in the game.
The sidelines are safe, but sterile. Nothing grows there.
(Source: James Clear โ 3-2-1 Newsletter)
We often think winners are different from losers. This idea challenges that belief beautifully.
Sharing a powerful reflection by James Clear:
The loser has more in common with the winner than with the person sitting on the sidelines.
The winner and the loser each had the courage to try. Both risked embarrassment. Both were willing to face uncertainty. Both were stubborn enough to continue.
Success is endurance in disguise. It belongs to the person who can absorb the losses without absorbing the identity of โloser.โ Itโs the courage to start โ and to stick with it โ that is the real separator. Results tend to find the person who stays in the game.
The sidelines are safe, but sterile. Nothing grows there.
(Source: James Clear โ 3-2-1 Newsletter)
๐2โค1