Algorithmic trading

SEBI’s Study on F&O Trading: Key Lessons for Traders

The SEBI study on Futures and Options (F&O) trading reveals alarming statistics about retail traders in India. Over 93% of individual F&O traders lost money between FY 22 and FY 24, with average losses of ₹2 lakh per person. High transaction costs, complex options strategies, and the dominance of algorithmic trading by institutional players contribute to these poor outcomes. While futures trading saw some success, most traders still struggle in the options market. The study underscores the need for expertise, as casual participation in F&O trading often results in significant financial losses for individual traders.

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