Not at all! There is no standard rule that the short-term capital loss has to be first set off against short-term capital gains before being set off against long-term capital gains. So, you need to look at the applicable tax rate on various Capital Gains and try to set-off your capital loss against the capital gain which has the lowest tax rate. You must also take into account your peak tax rate applicable since that is what determines your applicable rate of STCG tax. You need to use some discretion while doing the same.