- 88.5% of traders under 30 years of age incurred losses in futures and options trading, according to a recent study by capital markets regulator SEBI.
- Traders under 30 accounted for 43% of the trader base in FY26, while low-income traders have majorly remained active in the derivatives market, trading at an intensity of 75 times their portfolio value.
- Around 73% of traders have annual incomes below Rs 5 lakh, accounting for 53% of aggregate losses.
- Individual F&O traders lost Rs 91,685 crore in FY26, with 87.7% losing money even as active participation fell 18%.
- The share of loss-makers was generally highest among traders with annual income below Rs 10 lakh, particularly in the lower and medium capital-employed categories, where loss-maker shares frequently exceeded 90%.
- Traders below the age of 30 generated derivatives turnover of about 93 times their equity portfolio, compared with around 20 times among traders above 50 years.
- Traders earning less than Rs 5 lakh a year accounted for roughly three-fourths of participants, generating 43% of turnover but accounting for 53% of total losses.
SEBI's recent study highlights a troubling trend in the futures and options market, revealing that 88.5% of traders under 30 lost money in FY26, with total losses amounting to ₹91,685 crore. This demographic accounted for 43% of the trader base, a significant increase from 31% in FY22.1
The report indicates that 87.7% of individual traders lost money, a slight improvement from 90.9% in FY25, as overall participation dropped by 18%, the first decline since FY16. The number of active traders fell to 87.5 lakh from 106.2 lakh the previous year, with new entrants plummeting to 20.8 lakh from 34.3 lakh.45
Traders earning less than ₹5 lakh annually represented 73% of the trader base and accounted for 53% of total losses. Notably, options trading was particularly detrimental, with 92% of individual losses attributed to this segment. Among loss-makers, the average loss was ₹1.47 lakh, compared to an average profit of ₹1.22 lakh for profitable traders.
The study also noted that traders below 30 generated a turnover of 93 times their equity portfolio, significantly higher than the 20 times turnover of those over 50. Maharashtra, Gujarat, and Uttar Pradesh contributed to 41% of total net losses, while B30 cities accounted for 58% of retail derivatives losses.7
“Traders earning below ₹5 lakh annually made up 73% of participants and accounted for 53% of aggregate losses, while options trading drove 92% of individual losses. Proprietary trading firms still earned ₹44,000 crore in gross profits, with 99% of FPI profits coming from algorithmic trading.”
