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STT (SECURITIES TRANSACTION TAX)

Government tax, which is levied on trade value.

Published by The Retail Trader · JUL 31, 2026 · Risk Management

STT (Securities Transaction Tax) — Government tax, which is levied on trade value.

WHERE THIS FITS IN

This term comes under Risk Management, in the section "Calculation of COST". Cost is also a type of risk, because it is charged on every trade – not profit:

RELATED TERMS TO READ

Other terms in this group — understanding them together is more useful:
• Brokerage
• Exchange Transaction Charges
• GST and Stamp Duty
• DP Charges
• Total Round-Trip Cost
• Slippage Cost
• Overtrading Cost

To read the entire group and all its examples at one place, see the journal "RISK MANAGEMENT: DICTIONARY OF AVOIDANCE" - this term has been taken from there.

This entry is for educational purposes only and is not a recommendation to buy or sell. Exchanges change charges, margins, lot sizes and expiry rules from time to time, so verify any figures with your broker or exchange.

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