{"id":332152,"date":"2026-10-29T13:42:25","date_gmt":"2026-10-29T08:12:25","guid":{"rendered":"https:\/\/univest.in\/blogs-2\/?p=332152"},"modified":"2026-10-29T13:42:25","modified_gmt":"2026-10-29T08:12:25","slug":"stt-hike-backfire-nithin-kamath-says-traders-are-moving-to-riskier-trades-what-the-stt-hike-changed-for-f-and-o","status":"publish","type":"post","link":"https:\/\/univest.in\/blogs-2\/stt-hike-backfire-nithin-kamath-says-traders-are-moving-to-riskier-trades-what-the-stt-hike-changed-for-f-and-o\/","title":{"rendered":"STT Hike Backfire? Nithin Kamath Says Traders Are Moving to Riskier Trades: What the STT Hike Changed for F&O"},"content":{"rendered":"

Nithin Kamath wrote on 28 Oct 2026 that the STT hike and other F&O curbs may have pushed traders toward riskier behaviour: options are about 90% of F&O activity, and at Zerodha only about 10% of option buyers are profitable, against about 40% of option sellers and about 50% of futures traders; STT on futures rose from 0.02% to 0.05% from 1 April 2026.<\/em><\/p>\n

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Quick Answer<\/strong><\/p>\n

The STT hike raised securities transaction tax on futures from 0.02% to 0.05% and on options premium from 0.10% to 0.15% from 1 April 2026. Nithin Kamath argues that this and other F&O curbs may have pushed F&O traders toward options buying, weekly expiries and unregulated crypto contracts, which carry more risk. His numbers are internal observations from Zerodha: roughly 50% of futures traders, 40% of option sellers and 10% of option buyers are profitable. This is his opinion and not independent proof, and this article is educational and not a recommendation.<\/p>\n<\/p><\/div>\n

A tax meant to slow speculation can change what traders do instead of how much they trade. This article explains what the STT hike changed in rupees, what Nithin Kamath says traders did in response, which of his numbers are data and which are opinion, why options buying can look attractive after a cost increase, and what F&O traders should watch.<\/p>\n

Two flags. The shift toward riskier trades is a claim from one broker’s founder, and his post gives no independent data for it. One of the articles I read on the rate change was dated before the April effective date, so I used a second source to confirm the rates. It is educational and not advice.<\/p>\n

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