Retail investors have lost more than Rs 1 lakh crore in the derivatives segment of the stock market in FY 2025. About 91% of individual traders in this segment have been in loss. This is 41% more than last year (FY24), when the loss was Rs 74,812 crore. SEBI has released a study regarding this. The average loss of each trader was Rs 1.1 lakh According to the study, the average loss of each trader was Rs 1.1 lakh, which was Rs 86,728 last year. In FY25, 9 out of 10 traders have lost money. There has been no improvement in the situation since last year. Overall, about 96 lakh unique traders participated in it, which is 20% less than before, but 24% more than two years ago. SEBI covered all investors in its study. Loss of about Rs 2.87 lakh crore in four years The total loss of retail traders in the last four years has been around Rs 2.87 lakh crore. This shows that the loss is increasing every year. SEBI tightened the rules, but the loss did not reduce SEBI is trying to make investors aware and make the rules more strict. SEBI has tightened some rules from November 2024. Such as reducing weekly expiry, increasing lot size, and increasing trading margin. Along with this, it is also increasing the monitoring of big players. What is derivatives trading? Derivatives trading means investing money in complex products like futures and options (FO). This is a high-risk game in the stock market. It is not easy for common people and most people lose money in it. Future: This is a type of contract in which you promise to buy or sell a stock or index (such as Bank Nifty) at a fixed price on a fixed date in the future. This contract is valid till a fixed date (expiry). In this, you do not have to pay the full amount at the time of the deal, only the margin (around 10-20%) has to be paid. Example: Suppose, you buy 1 contract of Bank Nifty futures, which is trading at 48,000. If the lot size is 15, then its notional value: 48,000 × 15 = ? 7,20,000. Options: This is also a derivative contract, but in this you get the right (not a promise) that you can buy (call option) or sell (put option) a stock or index in the future at a fixed price (strike price). It is your choice whether you exercise this right or not. Example: Suppose, Bank Nifty is at 48,000, and you buy a put option whose strike price is 47,500 and the premium is ? 200 per lot. If lot size is 15 then premium: ?200 × 15 = ?3,000. 65% to 85% of brokers’ revenue comes from FO Stock brokers generate most of their revenue from futures and options trading which is around 65% to 85%. Last year, Nithin Kamath, founder of brokerage firm Zerodha, had said that SEBI’s regulatory change restricting FO could badly impact brokers’ revenue.
