Futures and options generated a profit for only 7.2% of the individual traders in the last three years to March 2024. A mere 1% of individual traders managed to make a profit of more than ₹1 lakh.
SEBI revealed that the total net loss of individual traders amounted to ₹1.81 lakh crores from FY22 to FY24. 93% of more than 1 crore individual traders have faced a loss of around ₹2 lakh per person while 4 lakh traders faced an average loss of ₹28 lakhs per person from FY22 to FY24.
While the losses are huge, it has not pushed away the investors from entering. With 5.1 million retail traders in FY22 in the F&O segment, it has almost doubled to 9.6 million in FY24. Individual traders have eaten up the market with a 99.8% share. In the period of FY22 to FY24, 1.13 crores of unique individual traders have traded in futures and options at least once a time.
In FY24, 91.1% of the individual traders faced net losses of ₹75,000 crores, but the irony is that FPIs and proprietary traders made a profit. In FY24, FPIs made ₹28,000 crores of gross profits while proprietary traders earned ₹33,000 crores. More than 95% of the profits for FPIs and proprietary traders are from algo entities.
Take the approach of “analyze before invest” in F&O contracts and open the demat account now to start trading.
Reference:
https://www.sebi.gov.in/media-and-notifications/press-releases/sep-2024/updated-sebi-study-reveals-93-of-individual-traders-incurred-losses-in-equity-fando-between-fy22-and-fy24-aggregate-losses-exceed-1-8-lakh-crores-over-three-years_86906.html
