Young Traders Drive Equity Derivatives Surge Even as FY26 Losses Mount
· Business · Economic Times
Traders under 30 years of age accounted for 43% of individual participants in India's equity derivatives market in FY26, compared to 31% four years earlier. However, a study by the Securities and Exchange Board of India (Sebi) revealed that 89% of these young traders incurred losses during the period. The retail derivatives market has increasingly attracted investors from smaller towns and lower-income brackets, with about three-fourths of individual traders earning an annual income below ₹5 lakh. Investors from smaller towns, classified as B30 regions, accounted for roughly two-thirds of individual traders and nearly half of derivatives turnover. Within the sub-₹5 lakh income category, 88% of traders suffered losses, contributing to 53% of aggregate derivatives losses while accounting for 43% of total turnover.
Why it matters
The high incidence of financial losses among young and low-income retail traders underscores growing risks in the equity derivatives segment, prompting increased regulatory scrutiny from Sebi.
Read the original report — Economic Times
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