88% of Individual F&O Traders Incurred Losses in FY26
· Business · Economic Times
A recent study by SEBI reveals that 88% of individual futures and options traders in India suffered financial losses during FY26. Options trading accounted for 92% of the total aggregate losses recorded by these retail investors. Despite regulatory interventions and increased Securities Transaction Tax to discourage excessive speculation, retail wealth depletion remains significant. The findings echo long-standing warnings from Warren Buffett, who famously described derivatives as lethal financial time bombs. The market regulator and the government continue to advise retail participants to exercise caution when engaging in the derivatives segment.
Why it matters
The persistent high loss rate among retail traders highlights the significant financial risk of derivatives, prompting continued regulatory scrutiny and potential further policy measures to curb speculative trading.
Read the original report — Economic Times
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