---
title: "F&O charges in India: STT, NSE fee, GST, stamp duty"
description: "Every charge on an Indian F&O trade at 2026 rates, with STT at 0.15% on option sales, worked on dated Nifty prices as three round trips of one lot."
source_url: "https://www.rupeecase.com/learn/path-12/module-12-6-cost-of-an-fo-trade"
---

[Path 12 6 of 9](/learn/path-12/)The real cost of a trade: STT, exchange fees, SEBI fee, GST and stamp duty[Next 12.7](/learn/path-12/module-12-7-position-sizing-and-risk-of-ruin)

On Tuesday 31 Mar 2026 NSE told its members that the Finance Act 2026 would take [STT](/learn/glossary#stt) on a sold future to two and a half times its old level from the next day. Take one lot of the June Nifty future as it settled on 10 Jun 2026, Rs 15.11 lakh of contract value. The sale would have paid Rs 302 in STT under the old rate. Under the new one it pays Rs 755, which is Rs 453 more for the same lot, before the exchange, SEBI, [stamp duty](/learn/glossary#stamp-duty) or GST have taken anything. Costs are the one part of a trade you know before you place it, and I read the cost line of any plan before its edge. This lesson lays every charge out in order, runs a round trip through three Nifty positions, and shows which charge weighs most on which trade.

3By the end you can

1. List each charge on an F&O order, who collects it and which side pays.
2. Work out the round trip cost of one Nifty lot, in rupees, per unit and as a share of the price.
3. Say what the 1 Apr 2026 STT rise changed, and why a backtest needs the rate in force on each trade date.

Watch in the terminal: what are brokerage, STT, GST and the platform fee? A short tutorial on sample data.

## The idea, plainly

Think of toll booths on a highway. Every order passes through several, each takes a little, and a round trip passes through twice. Most of the confusion about costs is not knowing which booth takes what, so start with the map.

A round trip pays five collectors, and STT is the biggest statutory one

Rates from 1 Apr 2026, as in the NSE circulars on STT and transaction charges. STT on an exercised option is charged on its intrinsic value, to the buyer. Source: NSE circulars NSE/FATAX/73524 and NSE/FA/73061; NSE Clearing circulars on stamp duty; SEBI turnover fee. As of 16 Oct 2026.

### STT: the big one

Securities Transaction Tax is collected through the exchange for the government. On options and futures it falls on the sell side only: 0.15% of the premium on an option sold and 0.05% of the price on a future sold, from 1 Apr 2026. An option held to expiry and exercised pays 0.15% on its intrinsic value, for a call the settlement price less the strike, and the buyer pays it.

STT on selling an option is now three times its 2016 rate

The futures rate moved the same way and is now five times its 2016 level. Each step came with a Finance Act. Source: NSE circulars NSE/FATAX/32385, 56235, 63809 and 73524. As of 31 Mar 2026.

### The fixed ones, and the one you choose

The NSE charge, the SEBI turnover fee and stamp duty are set by rule and fixed per crore, so on one lot they are small. GST at 18% sits on brokerage and exchange charges, never on STT or stamp duty. Brokerage is different. It is not statutory. Your broker sets it, often as a flat fee per order, which makes it the one charge that does not shrink with the size of the trade.

### In a backtest

A backtest must charge every leg of every trade at the rate in force on that date. The chart above is the schedule: a test of 2024 trades that uses the 2026 rate overstates its costs, and one that uses no rate flatters every number it reports. Brokerage and [slippage](/learn/glossary#slippage) go in as labelled assumptions. Slippage is not in end of day files, so this school cannot measure it; [Learn module 10.2](/learn/path-10/module-10-2-the-real-cost-of-trading-slippage-and-transaction-costs) shows how to measure your own. [Module I34](/learn/path-19/module-19-1-backtest-biases) takes the other ways a test lies.

Five rule changes since 2019, so each trade date has its own rates

1. 1 Sep 2019**Exercise STT moves to intrinsic value**An exercised option used to pay STT on its settlement price. From this date it pays on settlement price less strike.

2. 1 Jul 2020**Stamp duty at national rates**Stamp duty on exchange trades is collected centrally at flat rates, paid by the buyer.

3. 1 Oct 2024**One flat NSE charge for every member**SEBI's true to label rule ends volume slabs in exchange charges. STT on options and futures sold rises the same day.

4. 1 Mar 2026**NSE restructures its charge**NSE rolls back the extra it took for its investor protection fund and raises its transaction charge by the same amount. The total is unchanged.

5. 1 Apr 2026**STT rises again**Options sold and exercised go to 0.15%, futures sold to 0.05%.

Dates are the days each rule took effect. A contract note carries the rates of its own date. Source: NSE circulars on STT, stamp duty and transaction charges; SEBI circular of 1 Jul 2024 on charges. As of 16 Oct 2026.
3 terms this section turns on

From the module glossary; every term is in the Learn glossary too. Source: Module 12.6, The real cost of a trade: STT, exchange fees, SEBI fee, GST and stamp duty.

## Worked example: three round trips, one lot each

Each trade below is one lot of 65 units, bought and sold back at the same price, so the result before costs is zero and the table shows only what the trade had to pay. Prices are NSE settlement prices of 10 Jun 2026: the 23,250 call at 321.65, the 23,800 call of the weekly expiry at 20.50, and the June future at 23,240.10. Rates are those in force from 1 Apr 2026. Brokerage is an assumption of Rs 20 an order, flat, and not a quote from any broker.

| Rupees per lot | 23,250 call | 23,800 call | June future |
| --- | --- | --- | --- |
| Value of a leg | 20,907 | 1,333 | 15,10,607 |
| STT, sell leg | 31.36 | 2.00 | 755.30 |
| NSE, SEBI, stamp | 15.53 | 0.99 | 88.52 |
| GST on NSE charge | 2.67 | 0.17 | 9.95 |
| Statutory total | 49.56 | 3.16 | 853.78 |
| Brokerage, GST | 47.20 | 47.20 | 47.20 |
| All in | 96.76 | 50.36 | 900.98 |
| All in, points a unit | 1.49 | 0.77 | 13.86 |
| All in, share of a leg | 0.46% | 3.78% | 0.06% |

Read 4 more paragraphs, 267 words
The last two rows are the ones to carry away. Points per unit is the all in cost divided by the 65 units: how far the price must move before the trade has paid for itself. Compare it with the edge you expect, not with the rupee total.

Read across. On the 23,250 call, STT is 63% of the statutory charges. On the future it is 88%. The 23,800 call tells a different story: its statutory charges are only Rs 3.16 on a premium of Rs 1,333, but two orders at the assumed brokerage lift that to Rs 50.36, 3.78% of the premium. The option has to gain 0.77 points just to pay its way, on a price of 20.50. The future costs the most in rupees, Rs 900.98, and the least as a share of its value.

Exercise is its own case. A buyer who held the 23,800 call to expiry on 16 Jun 2026 had it exercised on an intrinsic value of Rs 12,294.75 per lot and paid Rs 18.44 in STT. The same call had gained Rs 10,962 a lot before charges, which is the buyer in [Module F13](/learn/path-14/module-14-3-option-buyer-vs-seller), so the charge is small beside it. Charges decide small edges. They barely touch big moves. Tax on the profit is a separate matter, covered in [Learn module 11.2](/learn/path-11/module-11-2-tax-treatment-mfs-etfs-sgbs-bonds-and-fno).

SEBI's Aug 2026 profitability study counted what this adds up to for individual traders: about Rs 25,000 crore in transaction costs in each of FY25 and FY26, and over FY22 to FY26 brokerage was nearly half of the total.

## The common mistake

The belief: Zero brokerage means trading costs nothing. Brokerage is the one charge a broker can waive. On the future round trip above the statutory charges alone come to Rs 853.78, the same at any broker, and SEBI's Aug 2026 study found STT was more than a quarter of individual traders' costs in FY26. STT, the NSE charge, stamp duty and GST do not care which app sent the order. No brokerage is a lower bill, not an empty one. Ask what one round trip costs per unit, and whether the edge you expect is larger than that.

Watch in the terminal: what do estimated costs take? A short tutorial on sample data.

## Key takeaways

* STT falls on the sell side. On an exercised option the buyer pays it.
* From 1 Apr 2026 STT is 0.15% on options sold and 0.05% on futures sold.
* NSE charge, SEBI fee and stamp duty are fixed per crore, so small per lot.
* Brokerage is a flat fee per order, so it weighs most on small premiums.
* Closing a position is a second order with its own charges.
* A backtest must charge the rate in force on each trade date.

Two terms to hold on to from 12.6

From the module glossary. Source: Module 12.6, The real cost of a trade: STT, exchange fees, SEBI fee, GST and stamp duty.
**Before you trade.** Derivatives trading carries a high risk of loss. SEBI's study "Profitability of Individual Traders in the Equity Derivatives Segment (FY25 to FY26)" (August 2026) found that 87.7% of individual traders in equity F&O made net losses in FY26, with aggregate net losses of Rs 91,685 crore. [Read the SEBI study](https://www.sebi.gov.in/reports-and-statistics/research/aug-2026/study-profitability-of-individual-traders-in-the-equity-derivatives-segment-fy25-fy26-_103835.html)

What does The real cost of a trade: STT, exchange fees, SEBI fee, GST and stamp duty cover?Five collectors sit on every round trip. Which charge is large, which are not, and what a round trip costs before any profit. It works through The idea, plainly, Worked example: three round trips, one lot each, The common mistake, Key takeaways. It is module 12.6 of Path 12, Derivatives Basics and Rules, about 7 minutes of reading, free.

TTry it

## F&O costs and STT, on the same example.
Every statutory charge on a trade at the 2026 rates. Dated NSE end of day data, nothing live, no orders.

**F&O costs and STT**, Nifty, 10 Jun 2026, 30 Jun 2026 expiry.

[Open the f&o costs and stt](/learn/tools/fo-cost-calculator?chain=NIFTY_2026-06-10_2026-06-30&preset=call-round-trip)

  AF&O on RupeeCase

## Hedging only, in development
F&O at RupeeCase will do one job: protect a portfolio you already own, by a rule published before it runs. No speculation, no naked option selling, no leveraged bets. It is not available yet.

  [How hedging will work](/hedging)[Sign up for RupeeCase](https://invest.rupeecase.com/signup)

  [No hedgeFalls with the marketWith a putA floor, for a premiumIllustration with made up numbers, not a product and not a recommendation.](/hedging)

QQuick check

## 10 questions, 7 to pass.
Each attempt draws 10 of the 15 questions in this module's bank, and a retake draws a fresh set. A pass gives this module's Certificate of Completion. Your result stays on this device and counts towards the Path 12 certificate.

7 of 10 correct passes module 12.6

Every answer is explained when you check; a retake is always free. Source: RupeeCase Learn quiz rules (70% to pass).

  Passed

###

  Certificate ID

Download PNGPrint or save as PDF[Check the ID](/learn/certificates/verify)
Self paced and unproctored. A record of completing free education by RupeeCase; not a NISM certificate and not endorsed by NISM, NSE, BSE or SEBI. It qualifies no one to deal, advise or publish research.

CCheck yourself

## Path 12 so far.
Your quick check results on this device, stop by stop.

Stop 6 of 9 on Path 12

Derivatives Basics and Rules: every live stop, this module ringed. Source: RupeeCase Learn, Path 12.

1. [12.1Why derivatives exist: forwards, futures and options in one storyNot yet](/learn/path-12/module-12-1-why-derivatives-exist)
2. [12.2India's F&O market map: exchanges, clearing, SEBI and who tradesNot yet](/learn/path-12/module-12-2-india-fo-market-map)
3. [12.3Read SEBI's loss studies before your first tradeNot yet](/learn/path-12/module-12-3-sebi-fo-loss-studies)
4. [12.4Contract specs that matter now: lots, expiry days, strikes and settlementNot yet](/learn/path-12/module-12-4-contract-specs-lots-and-expiries)
5. [12.5Margins without jargon: SPAN, exposure, expiry day margin and upfront premiumNot yet](/learn/path-12/module-12-5-fo-margins-explained)
6. [12.6The real cost of a trade: STT, exchange fees, SEBI fee, GST and stamp dutyNot yet](/learn/path-12/module-12-6-cost-of-an-fo-trade#quiz)
7. [12.7Position sizing and risk of ruin for F&O beginnersNot yet](/learn/path-12/module-12-7-position-sizing-and-risk-of-ruin)
8. [12.8Red flags in F&O: tip groups, too good claims and registration checksNot yet](/learn/path-12/module-12-8-fo-red-flags)
9. [12.9Behaviour in F&O: loss chasing and what SEBI's behaviour study foundNot yet](/learn/path-12/module-12-9-fo-trading-behaviour)
10. [TPath test, 30 questionsNot yet](/learn/path-12/module-12-9-fo-trading-behaviour#pathTestSection)

Path 12 in reading time: 72 minutes over 9 modules

Minutes of reading per module, this one in amber. Source: RupeeCase Learn, Path 12.

    Explore next

## Put the module to work.

* [Free module 14.6Expiry and settlement: cash, physical, exercise and STT8 min read](/learn/path-14/module-14-6-expiry-and-settlement)
* [ToolOption payoff builderLegs on a dated Nifty chain, breakevens and charges](/learn/tools/payoff-builder)
* [Free module 12.5Margins without jargon: SPAN, exposure, expiry day margin and upfront premium8 min read](/learn/path-12/module-12-5-fo-margins-explained)
* [Free module 14.3Buyer or seller: payoffs, margin, win rate and expectancy9 min read](/learn/path-14/module-14-3-option-buyer-vs-seller)
* [Free module 19.1What a backtest is, and five biases that ruin it9 min read](/learn/path-19/module-19-1-backtest-biases)
* [QuestionWhat is STT on options and on exercise?A short answer with a dated chart](/learn/questions/stt-on-options)

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SSources

## Go to the source.
8 sources, NSE the most cited

The publisher of each source listed below. Source: Module 12.6 source list.
1. [NSE circular NSE/FATAX/73524 of 31 March 2026, STT rates from 1 April 2026](https://nsearchives.nseindia.com/content/circulars/FATAX73524.pdf) NSE
2. [NSE circular NSE/FA/73061 of 27 February 2026, transaction charges from 1 March 2026](https://nsearchives.nseindia.com/content/circulars/FA73061.pdf) NSE
3. [NSE, securities transaction tax on equity derivatives](https://www.nseindia.com/static/products-services/equity-derivatives-securities-transaction-tax) NSE
4. [NSE, stamp duty, charges and taxes](https://www.nseindia.com/invest/first-time-investor-stamp-duty-charges-taxes) NSE
5. [SEBI, circular of 1 July 2024 on charges levied by market infrastructure institutions (true to label)](https://www.sebi.gov.in/legal/circulars/jul-2024/charges-levied-by-market-infrastructure-institutions-true-to-label_84506.html) SEBI
6. [SEBI, Stock Brokers Regulations 2026 (turnover fee)](https://www.sebi.gov.in/legal/regulations/jan-2026/securities-and-exchange-board-of-india-stock-brokers-regulations-2026_98974.html) SEBI
7. [SEBI, Profitability of Individual Traders in the Equity Derivatives Segment (FY25 to FY26), August 2026](https://www.sebi.gov.in/reports-and-statistics/research/aug-2026/study-profitability-of-individual-traders-in-the-equity-derivatives-segment-fy25-fy26-_103835.html) SEBI
8. Hull, J., Options, Futures, and Other Derivatives, Pearson (trading costs and the bid ask spread) Book

GTerms

## 5 terms from this module.
[Securities transaction tax](/learn/glossary#stt)A tax collected through the exchange on each trade. On options and futures it falls on the sell side, and on an exercised option on the buyer.
Intrinsic valueFor a call, the settlement price less the strike, never below zero. STT on an exercised option is charged on it.
[Stamp duty](/learn/glossary#stamp-duty)A state levy on the buy side of an exchange trade, at fixed rates on premium or futures price.
Round tripAn entry and the exit that closes it. Each is an order, and each is charged.
[Slippage](/learn/glossary#slippage)The gap between the price a plan assumed and the price the order got. It is not on any contract note.
[All 230 terms in the glossary](/learn/glossary)

[Question people askWhat is STT on options and on exercise?A short answer with a dated chart](/learn/questions/stt-on-options)[Question people askMust a backtest include STT and costs?A short answer with a dated chart](/learn/questions/backtest-include-stt)[Related module12.5 Margins without jargon: SPAN, exposure, expiry day margin and upfront premium8 min, Beginner](/learn/path-12/module-12-5-fo-margins-explained)[Related module14.3 Buyer or seller: payoffs, margin, win rate and expectancy9 min, Beginner](/learn/path-14/module-14-3-option-buyer-vs-seller)[Pillar guideDerivatives and Quant115 modules across paths 12 to 19](/learn/derivatives)

Education only, not investment advice, a research report or a recommendation to buy, sell or hold any security. RupeeCase (QC Alpha Technologies Pvt Ltd) is not registered with SEBI as an investment adviser or research analyst. Contracts and prices shown are for illustration only, come from NSE end of day files at least 30 days old, and are not recommendatory. Derivatives trading carries a high risk of loss.