93% Lose in F&O — Is Your Money at Risk?

Millions of Indians are trading futures and options, but data shows most retail traders lose money while big algo desks profit. Here is what every small trader must know before placing the next trade.

Here's what happened: SEBI data shows over 93% of individual F&O traders in India reported net losses, with average losses running into tens of thousands of rupees per year.. Institutional players and algorithmic trading desks use high-speed systems, real-time data feeds, and risk models that individual retail traders simply cannot match or replicate.. Retail F&O participation has surged sharply post-COVID as zero-commission apps made options trading feel as easy as ordering food online — without the same understanding of risk..

What you should do: Calculate your total F&O profit and loss for the last 12 months honestly — include brokerage, STT, and GST charges before deciding to continue trading.. Avoid weekly expiry options if you are a part-time trader — theta decay (time value erosion) destroys retail positions fast, especially in the last 2 days before expiry.. Shift at least 80% of your investing capital to SIPs or index funds before allocating any small portion to speculative F&O — protect your core wealth first..

F&O losses above ₹2 lakh can be carried forward for 8 years to offset future speculative gains — file ITR-3 before July 31 to claim this benefit legally.