Uber Driver Loses Rs 2.5 Lakh In Options Trading, Warns Retail Investors Against Risks

A confession by an Uber driver on social media has once again highlighted the perils of derivatives trading among small retail investors in India. The video, posted on X, features the driver recounting how he lost a staggering Rs 2.5 lakh in options trading — an amount that dwarfs his modest monthly income of Rs 25,000.

"I incurred a loss of Rs 2.5 lakh in 2024, all through options trading. I had held stocks and they didn't result in any loss. The entire loss came from options," the driver said in Hindi. His admission highlights the dangers of entering the complex world of options trading without adequate knowledge or capital.

The man admitted he did not follow proper trading norms or risk management protocols, a lapse that cost him dearly. When asked whether the amount lost equated to a year’s income, he agreed without hesitation. The emotional weight of his experience led him to make a strong personal resolution — to stay away from options trading unless he can "have a good capital to invest.".

The Uber driver’s experience mirrors the broader concern around unregulated or under-informed retail participation in high-risk segments of the stock market.

According to a Financial Express report, the Indian retail trading community has seen a surge in participants post-pandemic, many of whom jump into the complex derivatives segment lured by the promise of high returns, only to suffer heavy losses.

The driver welcomed recent reforms introduced by the Securities and Exchange Board of India (SEBI), particularly the changes to fund settlement rules. "This is a good rule by SEBI; now there’s less chance of fraud," he said.

In January 2025, SEBI introduced a relaxation in the fund settlement norms for brokerage accounts that remain inactive for over 30 days. Aimed at easing operational pressures on brokers, the revised rule mandates that unutilised funds in such dormant accounts will now be returned during the next scheduled monthly settlement cycle, as outlined in the stock exchanges’ annual calendars.

Earlier, brokers were required to return these funds within three working days of identifying inactivity. Under the updated guidelines, SEBI stated that if a client has not placed any trades in the past 30 calendar days and holds a credit balance, the funds will automatically be settled on the next monthly settlement date.

The video also drew attention to another of the driver's concerns — the high brokerage fees that chip away at already thin margins for retail traders. Though the man’s loss is personal, his story echoes the experience of many small investors who often learn hard financial lessons in a fast-paced, high-risk market environment.