A new SEBI report reveals that although young and lower-income traders are increasingly participating in India’s futures and options market, over 88% under 30 are incurring losses, with regional disparities highlighting broader risks in retail trading.
India’s retail futures and options market is drawing in more young and low-income traders, but a new Securities and Exchange Board of India study suggests the odds remain heavily stacked against them. According to the study, 88.5% of traders under 30 lost money in derivatives trading, even as that age group made up 43% of the trader base in fiscal year 2026.
The losses were also concentrated among those with thinner incomes. SEBI found that about 73% of traders reported annual earnings below ₹5 lakh, and that group accounted for 53% of aggregate losses. The regulator said the share of losing traders was especially high among those earning below ₹10 lakh, with loss-maker rates often above 90% in lower and middle capital-employed categories.
Trading behaviour also appears to vary sharply by age and income. SEBI said younger and lower-income participants traded far more aggressively, with traders under 30 generating derivatives turnover worth about 93 times their equity portfolios, compared with roughly 20 times for traders over 50. The study also showed that retail participation is broadening beyond India’s biggest cities: so-called B30 locations, or places outside the top 30 financial centres, accounted for 67% of individual derivatives traders and 58% of retail losses.
The geographical pattern of losses was similarly uneven. Maharashtra, Gujarat and Uttar Pradesh together contributed 41% of net losses, according to the study. The findings add to a series of SEBI reviews that have repeatedly pointed to heavy losses in derivatives trading, including earlier studies reported by Livemint, Moneycontrol and The Telegraph India that found more than 91% of individual F&O traders lost money in fiscal 2024 and about 93% lost money between fiscal 2022 and fiscal 2024.
Disclaimer: This article is intended to inform and educate, not to recommend or endorse any financial product, investment or strategy. Please consider your own financial circumstances and seek professional advice where appropriate before making financial decisions.
