91% of Retail Traders Lose Money in F&O, SEBI Study Shows

General
1

Ever wondered how individual traders are doing in the risky world of equity derivatives? SEBI’s latest report gives some clear insights.

Even after rules were put in place to reduce speculative trading in the futures and options (F&O) segment, almost 91% of individual traders in equity derivatives lost money in FY25, similar to last year.

The regulator studied the profits and losses of individual traders and looked at the effect of rules introduced on October 1, 2024, to make the equity index derivatives system stronger.

Key Findings from December 2024 to May 2025

Index Options Turnover

  • Down 9% in premium terms and 29% in total value compared to last year.
  • Up 14% in premium terms and 42% in total value compared to two years ago.

Individual Trader Activity

  • Trading by individual traders dropped 11% compared to last year but is up 36% from two years ago.
  • The number of individual traders fell 20% from last year but is 24% higher than two years ago.

Overall Market Trend

  • India still has high equity derivatives trading, especially in index options, compared to global markets.
  • SEBI keeps a close watch to protect investors and maintain market stability.

Recent SEBI Measures

  • Better monitoring and disclosure in derivatives.
  • Shorter ban periods on single stock derivatives.
  • More oversight to prevent concentration or manipulation in index options.

Takeaway for Traders

Derivatives trading involves significant risk, and most retail investors may incur losses. Understanding the market, managing risk carefully, and monitoring trades closely are essential.

To learn more about derivatives and risk management, you can check TradeSchool by Alice Blue, an online platform with structured courses on trading and investing.

Disclaimer: Alice Blue Disclaimer on Financial Services and Trading Risks

2

Only realized trades are considered (contracts bought & sold, or expired). Open positions at period end are excluded.

4

Proof from SEBI Study & Coverage

  • SEBI’s study showed that net losses of individual traders in the equity derivatives segment (EDS) widened by 41% in FY25, reaching about ₹1,05,603 crore, compared to ~₹74,812 crore in FY24.
  • The percentage of traders making losses remained near 91% in FY25.
  • The study included data from the top 13 stockbrokers representing ~96 lakh unique traders in EDS.
6

So, does SEBI’s intervention mean trading derivatives is safe?

7

No. While SEBI’s reforms aim to mitigate risks, trading in leveraged instruments like futures and options remains risky. High losses among retail traders indicate that risk management and investor awareness are essential.

1 Like
8

Since alice blue is so supportive of sebi’ s actions, u can set a precedent by banning weekly expiry for your clients.

90% of businesses fail pl ask the govt to stop starting new businesses also

9

Since aliceblue is against trading u can make your platform only for investment.

More than 53% traders lose in cash [equity]segment also pl ask sebi to ban that also

your repeated posts against trading is it alice blue’s policy or your own

10

Good morning, Sennath! :slight_smile:

Alice Blue is into both trading and investment. We have ANT Mobi for trading, 1lyOptions for advanced trading and RISE app for mutual funds and IPOs.

1 Like