Risk Disclosures on Derivatives

• 9 out of 10 individual traders in the equity Futures and Options (F&O) segment incurred net losses.
• On average, the loss-making traders registered a net trading loss close to ₹50,000.
• Over and above the net trading losses incurred, loss makers expended an additional 28% of net trading losses as transaction costs.
• Those making net trading profits incurred between 15% to 50% of such profits as transaction costs.

Source:
SEBI study dated January 25, 2023, on "Analysis of Profit and Loss of Individual Traders dealing in equity Futures and Options (F&O) Segment".