Net losses of individual traders in F&O widened in FY25: Sebi study

Sebi's new study reveals a 41% rise in net losses of individual traders in the equity derivatives segment in FY25, with over 91% of traders making losses, despite regulatory measures.

Net losses incurred by individual traders in the equity derivatives segment have widened by 41 per cent in financial year 2024-25 compared to FY24, according to a report by the Securities and Exchange Board of India (Sebi).

 

The market regulator’s new study showed that individual traders’ net losses rose to Rs 105,603 crore in FY25, compared to Rs 74,812 crore in FY24, after accounting for transaction costs. Over 91 per cent of traders made losses in the equity derivatives segment, broadly unchanged from the previous study. 

The study included the top 13 stock brokers with a combined client base of around 96 lakh unique traders in the Futures and Options (F&O) segment. 

The number of unique individual traders in the segment declined from 61.4 lakh in the first quarter of FY25 to 42.7 lakh in the fourth quarter. The decline was also attributed to the rollout of new measures by the market regulator to curb speculation and hyperactivity in the F&O segment, including limiting weekly expiries and increasing lot sizes. 

 

“During the first three quarters of FY25, the aggregate net loss across individual traders and the average net loss per person were rising. However, it is seen that in FY25: Q4, there is a reduction in losses of individual traders,” noted Sebi.

 

In the last six months, the number of overall unique traders dealing in F&O saw a 20 per cent decline compared to the previous year. Further, traders with a total turnover of less than Rs 1 lakh witnessed a significant decline compared to the previous year.

 

“From December 2024 to May 2025, the average daily traded value by individual investors in EDS witnessed a decline of 11 per cent compared to the same period the previous year, but it showed a growth of 36 per cent compared to the same period two years ago,” said Sebi.

 

Index options turnover, year on year, has declined by 9 per cent in premium terms and 29 per cent in notional terms. However, compared to two years ago, index options volume is up by 14 per cent in premium terms and 42 per cent in notional terms.