The Securities and Exchange Board of India released two studies on individual investors’ profitability and trading behavior in the equity derivatives segment during FY25 and FY26. Active individual traders fell about 20% to 78.6 lakh in FY26, while new entrants declined about 40%. Aggregate net losses narrowed to INR 91,685 crore from about INR 1.12 lakh crore, but 87.7% of traders still lost money and the average loss edged up to about INR 1.17 lakh per trader. Options generated about 92% of aggregate individual losses, while individual traders incurred around INR 25,000 crore in transaction costs. Nearly 97% of traders predominantly bought options, compared with about 2% classified mainly as options sellers. Options sellers were the only major strategy group to record positive median returns on capital employed. Trading was concentrated near expiry, with 59% of index options turnover in zero-days-to-expiry contracts and 97% in contracts expiring within one week. Higher trading intensity was associated with higher loss rates, particularly among younger investors, lower-income groups and traders with smaller equity portfolios. Experience did not correspond with better outcomes, and about 90% of traders who lost money for two consecutive years and continued trading lost again in the following year. The profitability study covered the top 15 brokers, representing about 90% of individual investors in the segment, while the behavioral analysis primarily used a random sample of 5,000 traders.
2026-08-20Securities & Exchange Board of India
Securities and Exchange Board of India studies find 87.7% of individual equity derivatives traders lost money in FY26
Securities and Exchange Board of India studies found that active individual equity derivatives traders declined 20% in FY26, but 87.7% still incurred losses. Aggregate net losses narrowed to INR 91,685 crore, while the average loss rose slightly to INR 1.17 lakh. Options buying dominated activity, and higher trading intensity was associated with worse outcomes.