1 week ago
SEBI Finds Retail F&O Losses Fall, But Options Risks Persist
SEBI studied how people performed when trading futures and options.
Fewer individual traders participated in FY26 than in the previous year.
Many people also stopped trading, while fewer new traders joined.
The total amount lost by individual traders went down, but nearly nine out of ten still lost money.
Options were much more popular than futures among individual traders.
Options also caused most of the total losses.
Younger traders made up a larger share of the market, but they lost money more often than older traders.
The study shows that a smaller retail market was not necessarily a safer one.
Active individual F&O traders fell 18% to 87.5 lakh in FY26, while existing trader exits rose 76% to 46 lakh.
Aggregate net losses declined 18% to Rs 91,685 crore, but 87.7% of individual traders still lost money.
Options dominated retail activity: 99.3% traded options, 93% traded only options, and options generated 92% of aggregate losses.
Traders under 30 made up 43% of participants, with 89% recording losses compared with 81% of traders above 60.
Proprietary traders earned the largest gross profit at Rs 44,483 crore, with 99% of FPI and proprietary profits coming from algo entities.
- Who
- SEBI, individual traders, and other market participants including proprietary traders, FPIs, corporates and mutual funds.
- What
- SEBI reported that retail equity derivatives participation and aggregate losses declined in FY26, while options remained dominant and most individual traders continued to lose money.
- Where
- The equity derivatives market, including participation from B30 cities.
- When
- The study covered FY25-FY26 and was released on August 20, 2026.
- Why
- Individual participation contracted, with fewer new traders entering and more existing traders exiting, while options continued to account for most retail activity and losses.
Key facts
- Active individual traders
- 87.5 lakh in FY26, down 18% from 1.06 crore in FY25.
- Individual net losses
- Rs 91,685 crore in FY26, down 18% from Rs 1,11,788 crore.
- Loss-making individual traders
- 87.7%, compared with 90.9% in FY25.
- Average loss among loss-makers
- Rs 1.17 lakh, up 2% from Rs 1.14 lakh.
- Options participation
- 99.3% traded options at least once, and 93% traded only options.
- Options share of losses
- Options accounted for 92% of aggregate individual-trader losses.
- B30-city participation
- B30 cities represented around 66% of individual traders and roughly 50% of derivatives turnover.
Quotes
SEBI spokesperson
Official representative of the Securities and Exchange Board of India
“"Participation of individual traders declined by 18% to 87.5 lakh in FY26."”
financialexpress.com
“"Aggregate net losses declined by about 18% to Rs 91,685 crore in FY26."”
financialexpress.com
Sources
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