Nithin Kamath says STT hikes may push riskier trading
In short
Zerodha’s Nithin Kamath said higher STT and other trading curbs may be pushing traders into riskier options trades. He cited Zerodha data showing about 50% of individual futures traders and 40% of option sellers were profitable, versus 10% of option buyers.
He warned the rules may be changing how people trade. The report does not prove the taxes caused the shift.
What the reporting says
Zerodha’s Nithin Kamath said higher securities transaction taxes and other curbs on futures and options trading may have pushed traders toward riskier behaviour. He pointed to platform data showing about 50% of individual futures traders and 40% of option sellers were profitable, versus 10% of option buyers. The immediate concern is that curbs may be changing trading behaviour, but the reporting does not prove a direct causal link.
Why it matters
Zerodha’s Nithin Kamath warned that higher securities transaction taxes and other restrictions on futures and options may be pushing traders toward riskier behaviour. He cited Zerodha data showing about 50% of individual futures traders and 40% of option sellers were profitable, compared with 10% of option buyers. The reporting supports concern about trading patterns, but not a confirmed cause-and-effect link.