SEBI F&O Study: Nine Out Of 10 Individual Traders Incurred Losses In FY25

Nearly 91% of individual traders incurred losses in futures and options trading in fiscal year 2025, according to a study by the Securities and Exchange Board of India. This reflects a similar trend related to F&O trade which the market watchdog had observed in its previous study.

In addition, the regulator noted that the total number of individual investors between December 2024 and May 2025 declined 20% year-on-year. However, they were up 24% as compared to two years ago.

Number of unique individual traders declined from around 61.4 lakh in the first quarter of FY25 to around 42.7 lakh in the last quarter of the fiscal.

The study shows that traders with total turnover of less than Rs 1 lakh witnessed high degrowth compared to previous year.

The findings also indicate that the net losses of individual traders widened by 41% to Rs 1.06 lakh crore in fiscal 2025 from Rs 74,812 crore in FY24.

According to the study, during the first three quarters of fiscal 2025, the aggregate net loss across the individual traders and the average net loss per person were rising.

However, it is seen that in the fourth quarter, there is a reduction in losses of individual traders – both at aggregate as well as per person level.

According to the study, index options turnover fell 9% in premium terms and 29% in notional terms. However, in comparison to two years ago, the index options volume is up 14% in premium terms and 42% in notional terms.

The study also noted that the turnover of individuals in premium terms in equity derivatives segment has declined 11% year-on-year and risen 36% over similar period two years ago.

During December 2024 to May 2025, average daily traded value in equity derivatives segment witnessed degrowth of 5% when compared to the similar period last year. It fell 46% in comparison to the same period two years back.

India still sees very high trading in index options compared to global markets. Hence, SEBI will continue monitoring index options for investor safety and stability.

During these five years, within equity derivatives segment, options segment in premium terms grew at the fastest rate with average daily premium traded growing at the CAGR of 72% for index options and 54% for single stock options.

Similar trend was observed in notional turnover with index options turnover growing at CAGR of 101% and stock options turnover growing at CAGR of 61%.

Within EDS, during the last six months, average daily premium traded for index options saw a degrowth of 9%.