Traders getting looted in options trading, still investing money, 89 percent have suffered heavy losses

Traders constantly losing money

The glut of training courses in options trading on social media has also attracted people towards it. On an average, options worth about Rs 2 crore are sold every second. So who is making money here? A SEBI study reveals that 89 per cent individual traders in Futures and Options (F&O) have lost their money. The regulator gathered this data by studying the trading data of top 10 brokerages. During the year 2021-22, the average loss per retail center was Rs 1.1 lakh. According to a Delhi-based marketing professional, he started trading eight months back. So far he has incurred a loss of roughly Rs 25,000. Undaunted by this, he wants to stick to the game until his losses are recovered.

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these people are benefiting

Financial consultants say that due to the very low premium of options, people do not face much difficulty. But this pain increases with time. According to experts, in the derivatives market, one gains at the cost of another’s loss. Here institutional investors and proprietary traders can get rich only when they find people who are ready to lose. Experts say that derivatives are meant to reduce risk, but small investors use them to generate risk. This type of random trading will not make money.