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Risk Disclosures on Derivatives

Before trading in derivatives (Futures and Options), every investor should understand the following SEBI-published statistics on individual trader outcomes.

Key statistics

  • 9 out of 10 individual traders in the equity Futures and Options Segment incurred net losses.
  • On average, loss makers registered net trading losses 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% and 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". Aggregate-level findings are based on annual profit/loss incurred by individual traders in equity F&O during FY 2021–22.

Investments in the securities market are subject to market risks. Please read all related documents — including our Risk Disclosure Document (RDD) and Rights & Obligations of Stock Brokers — carefully before investing.