In a new study, India’s market regulator SEBI revealed that retail traders lose ₹1.05 lakh crore on options trading during FY25.
This is a big jump of 41% from ₹74,812 crore in FY24.
It shows how risky options and futures trading can be for small investors.
📊 What the SEBI Data Shows
- About 9.6 million retail traders traded in equity derivatives in FY25.
- Nearly 91% of them lost money.
- The average loss per trader was ₹1,10,069, higher than last year’s ₹86,728.
- The study covered trades in index options and other equity derivatives.
⚠️ Why Retail Traders Lose ₹1.05 Lakh Crore on Options Trading
Options trading looks simple but is very risky.
Many small traders:
- Use high leverage, risking big losses.
- Follow tips and influencers without real knowledge.
- Trade too often, hoping for quick profits.
- Face powerful algorithmic traders who react faster.
🔍 New SEBI Rules to Stop Losses
To stop further losses, SEBI has:
- Increased lot sizes to reduce overtrading.
- Limited the number of weekly expiry options.
- Asked brokers to show clear risk warnings.
These rules aim to protect new traders who may not understand the risks.
🏦 Jane Street Case & Alleged Manipulation
SEBI also found that global trading firm Jane Street may have unfairly moved the market:
- Jane Street allegedly made over ₹36,500 crore in profits.
- SEBI has banned Jane Street from trading in Indian markets.
- This might have added to losses for retail traders.
📅 What Happens Next
| Step | What it Means |
|---|---|
| SEBI studying new data | May tighten rules again |
| Brokers must warn traders | More visible risk alerts |
| Retail traders to be tested | Suitability tests may come |
SEBI may also ask traders to pass a basic exam before trading options.
✅ What Retail Traders Should Do
If you trade options:
- Learn about risks and leverage.
- Trade with money you can afford to lose.
- Avoid following social media tips blindly.
- Check SEBI and broker warnings carefully.
🧠 Final Take
In FY25, retail traders lose ₹1.05 lakh crore on options trading, as per SEBI data.
While options trading can look tempting, it remains very risky.
SEBI is now pushing for tighter rules to protect small investors, but true safety comes from knowledge and caution.
