Traders advise caution as retail activity in F&O segment picks up

Market participants say heightened volatility in markets is attracting investors to take advantage of sharp swings, but only few will end up making money

Retail investors are showing more interest in the futures and options (F&O) segment, with the share of such activity rising to 41 per cent in April, against a 12-month average of 38 per cent. 

Market participants say the heightened volatility is attracting investors who wish to take advantage of the sharp swing in the bourses. 

“A spike in volatility gives more opportunities to traders, compared to when markets are flat or consolidating. At our end, we have seen interest among retail clients more than double, on a year-on-year basis,” said Jimeet Modi, CEO of Samco Securities. 

Year-to-date, the India VIX — a volatility