89% Of Young F&O Traders Lose Money, Finds Sebi Study
Young investors are increasingly participating in India’s futures and options (F&O) market, but a large majority continue to lose money, according to a Sebi study. Traders below 30 accounted for 43% of individual traders in FY26, up from 31% in FY22. According to a report by Mint citing Sebi data, around 89% of traders under 30 reported losses in FY26, the highest among all age groups. By…
A recent Sebi study reveals that 89% of young investors trading in India's futures and options (F&O) market lost money in FY26, the highest among all age groups. Traders under the age of 30 made up 43% of individual F&O traders, up from 31% in FY22. Despite a 18% decline in aggregate net losses for individual traders, their cumulative losses over five years reached nearly ₹3.85 lakh crore, with an average loss per trader of ₹1.17 lakh.
Options were the biggest source of retail losses, accounting for 92% of total individual trader losses. Nearly 88% of options traders lost money, compared to around 66% among futures traders. Retail participation in F&O trading has expanded beyond India's major cities, with investors in smaller cities accounting for two-thirds of individual traders and half of derivatives turnover.
Despite measures to reduce expiry-day trading, 59% of index-options turnover in FY26 still occurred on the expiry day, highlighting the risky nature of short-term options trading.
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