SEBI publishes a study of how individual traders fare in equity futures and options. The results have been similar every year.
| Finding | Figure |
|---|---|
| Individual traders with a net loss | 87.7% |
| Net loss of individual traders | ₹91,685 crore |
| Average loss per loss-making trader | ₹1.17 lakh |
| Share of losses from options | 92% |
| Individual traders in the year | 78.6 lakh |
Earlier studies found 91% loss-makers in FY25 and 93% loss-makers in FY22–FY24.
Where the losses come from
- Costs on every trade. Brokerage, STT, exchange fees, GST and stamp duty are paid on winning and losing trades alike. Frequent trading in small premiums turns them into a large share of the money at stake.
- Time decay. An option buyer needs the index to move far enough and soon enough. If it does not, the premium shrinks every day.
- Short-dated options. Weekly options near expiry are cheap for a reason: most expire worthless.
- Position size. A lot of an index option controls a large notional value. Small moves in the index become large moves in rupees.
- Tips and calls. Buying on someone else's call adds no edge and often adds a fee.
What helps
Know your maximum loss before entering, count all charges, keep each position small relative to your capital, and learn on paper before using real money.
Examples use illustrative values, not current market data. This is general education, not investment advice.