A Sebi study reveals 93% of individual traders in futures and options (F&O) incurred average losses of Rs 2 lakh during FY22-FY24
Individual traders spent Rs 50,000 crore on transaction costs over three years, with 51% going to brokerage fees and 20% to exchange fees
Algorithmic trading gave foreign portfolio investors (FPIs) and proprietary traders significant profits, while individuals faced heavy losses
43% of individual F&O traders are under 30, and 72% live outside the top 30 cities, highlighting the spread of trading across age groups and regions
Only 7% of individual traders made profits, illustrating the Pareto Principle, where a small minority succeeds while the majority loses
Retail traders must understand that F&O trading is high-risk with poor odds and consider revising strategies or exiting such leveraged markets