STT Hike Forces Traders to Rethink Strategies: FYERS CEO Tejas Khoday

• The recent STT hike increases market participation costs, prompting derivatives traders to reassess strategies like position sizing and trading frequency.
• Tejas Khoday, co-founder and CEO, FYERS, states STT is a cost on participation, not profits, affecting every trade regardless of outcome.
• Higher fixed trading costs raise the break-even threshold, narrowing the margin for error for smaller traders and requiring strategy adjustments.
• Industry data shows moderated derivatives turnover growth, while SIP inflows remain steady, indicating selective capital deployment rather than market exit.
• Khoday advises investors to assess trades net of all costs, avoid excessive trading, and prioritize efficiency over activity in a higher-friction environment.