Massive Losses for Individual Traders in Futures & Options Market

A study by SEBI has revealed that over 91% of individual traders in the Futures & Options (F&O) market lost money in FY24, with average losses of Rs 1.2 lakh per person. Less than 1% of traders made significant profits. The rapid growth in F&O trading underscores a need for better investor education and risk management.

A staggering 91% of individual traders, or 73 lakh people, lost money in the Futures & Options (F&O) segment during FY24, according to a recent study by markets regulator SEBI. The average net loss per trader amounted to Rs 1.2 lakh.

The study also revealed that 93% of over 1 crore individual F&O traders incurred average losses of Rs 2 lakh per trader over three years, with total losses exceeding Rs 1.8 lakh crore.

Despite the availability of sophisticated trading platforms, the rapid growth in retail participation in the F&O market highlights the urgent need for better investor education and risk management.