RBI concerns

The Rise and Risks of F&O Trading

The rise and risks of Futures and options (F&O) trading is driven by retail investors seeking quick profits and financial freedom. However, this growth raises significant concerns about the risks involved. Legendary investor Warren Buffett called derivatives “financial weapons of mass destruction,” and government officials echo these worries. With F&O trading volumes surpassing nominal GDP, regulatory bodies like SEBI are considering measures to curb excessive speculation. Social media further fuels this frenzy, creating an illusion of effortless wealth. As the market evolves, the need for education and mentorship becomes crucial to help novice traders navigate the complexities and mitigate risks effectively.

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