STT Hike Widens Derivatives Breakeven to ~25 Points, HFT Strategies Hit Hard

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STT Rise in Budget 2026

The Budget raised STT on equity derivatives, especially futures, sharply, increasing round-trip trading costs. This affects traders relying on thin margins

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Breakeven Costs Jump

Now, a Nifty future round trip can cost 20–25 index points in STT and charges compared to much lower earlier

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HFT & Algo Strategies Threatened

High-frequency, algorithmic and intraday systems now need larger market movements to break even, reducing profitability

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Derivatives Volumes May Fall

Experts say higher costs could shrink F&O trading volume by 20–30%, hurting liquidity and activity

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Brokers & Institutional Impact

Broker revenues and proprietary trading desks that depend on high turnover in derivatives may face pressure

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With Our Subscription Plans

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STT Hike Widens Derivatives Breakeven to ~25 Points, HFT Strategies Hit Hard

STT Rise in Budget 2026 The Budget raised STT on equity derivatives, especially futures, sharply, increasing round-trip trading costs. This affects traders relying on thin margins

Breakeven Costs JumpNow, a Nifty future round trip can cost 20–25 index points in STT and charges compared to much lower earlier

HFT & Algo Strategies ThreatenedHigh-frequency, algorithmic and intraday systems now need larger market movements to break even, reducing profitability

Derivatives Volumes May FallExperts say higher costs could shrink F&O trading volume by 20–30%, hurting liquidity and activity

Brokers & Institutional ImpactBroker revenues and proprietary trading desks that depend on high turnover in derivatives may face pressure