New Delhi: Recent report of Securities and Exchange Board of India (Sebi) regarding losses made by retail investors in India’s futures and options market has startling and eye-openings revelations. A detailed study of the report has made both Sebi and Finance Ministry anxious. The market watchdog may come out with seven step guide to protect small traders from losing money in F&O. The report has revealed that 93% (1.1 crore) retail traders lost Rs 1.81 lakh crore in three years from FY22-FY24.  Lets decode how small investors lost such a huge amount of money by trading in this segment:

Four Lakh Traders Lost Average Of Rs 28 Lakh In Last Three Years

Every loss making  trader lost average of around Rs 2 lakh at individual level during the three year survey period .  While, 4 lakh out of all the loss making traders suffered an average loss of Rs 28 lakh at individual (personal) level.

F&O Traders Became Addictive

Another explosive data that came out of the Sebi report was that 75% of retail traders remained active in F&O in the third year of the survey period even after they had made losses in the first two fiscals.

Options Trading Proved To Be More Riskier Than Futures

Percentage of loss making traders in futures was lower than that in options. About 60% of traders in futures segment suffered losses, while, 91.5% of options traders lost money.

Young People Suffered More Losses Than Experienced!

Experience counts! This proverb applies in F&O as well. In FY24, the percentage of young traders (below the age of 30) who made losses in F&0 was 93%. While, among loss making senior citizens (above the age of 60)  this figure was 79%.

Lower Income Group Made More Losses Than High Income Group

The percentage of loss-makers in Low Income Group (annual income less than Rs 5 lakh) was highest (92.2) as compared to all other age group.

Men Made More Losses Than Women

Out of all male traders, 91.9% participants lost money in FY24, while, only 86.3% of all female traders suffered losses in the same fiscal. Even the average loss suffered by men at individual level was higher than that of women. In case of male traders, the average per person loss was Rs 88,804. While, women traders made average loss of Rs 75,793 in FY24.

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