- Individuals with lower income of under Rs 5 lakh a year make up an overwhelming majority of retail F&O (futures and options) traders, at 73% in 2025-26, down marginally from 75% in 2024-25, according to a SEBI report.
- The number of retail traders dropped 20% to 78.6 lakh in 2025-26 from 98.1 lakh in 2024-25, but those making losses remained high at 88% in 2025-26 compared with 91% the previous year. Net losses dropped 18% to Rs 91,685 crore in 2025-26 from Rs 1.12 lakh crore in 2024-25.
- The number of youth (under 30) trading in F&O saw a sharper 26% decline to 32.83 lakh in 2025-26 from about 44 lakh the previous year, yet they made up the bulk of retail traders at 43% of the total in 2025-26.
- Of the 32.83 lakh youth who traded in F&O in 2025-26, a massive 29.07 lakh or 89% made losses, with their losses at Rs 19,287 crore, around 20% of total retail net losses of Rs 91,685 crore.
- Women's participation in F&O rose to 17.1% of retail traders in 2025-26 from 15.6% in 2024-25. While fewer women make losses compared to men, the proportion remains elevated: 85% of women made losses in 2025-26 (down from 88%), versus 89% of men in 2025-26 (down from 92%).
- SEBI stated that its data does not establish that its tightening measures caused a higher exit rate, noting “The analysis does not establish a causal relationship.”
A recent SEBI report highlights concerning trends among retail futures and options (F&O) traders, revealing that 73% earn under ₹5 lakh annually and 88% reported losses in FY26. The total number of retail traders decreased by 20% to 78.6 lakh from 98.1 lakh in the previous year.12
Among the youth, those under 30 years old accounted for 43% of retail traders, despite a significant 26% decline in their numbers to 32.83 lakh. Alarmingly, 89% of these young traders incurred losses, totaling ₹19,287 crore, which represents 20% of the overall retail net losses of ₹91,685 crore.34
The report, titled ‘Profitability of individual traders in the equity derivatives segment (FY25-FY26)’, also noted that while the number of women participating in F&O trading increased to 17.1%, 85% of them still made losses, a slight improvement from 88% the previous year. In comparison, 89% of male traders reported losses in FY26, down from 92% in FY25.5
Despite these troubling statistics, SEBI stated that its tightening measures did not directly correlate with the increased exit rate among traders, indicating a complex relationship between regulatory actions and trader behavior.
“The number of retail F&O traders fell 20% to 78.6 lakh in FY26, yet 88% still lost money, with net losses at ₹91,685 crore. Youth under 30 accounted for 43% of traders, and 89% of them incurred losses totaling ₹19,287 crore.”
The Indian Express
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