Retail traders lost ₹1.06 lakh crore in FY25- SEBI report
According to SEBI study, the average loss of every trader has suffered a loss of Rs 1.1 lakh.
Retail investors have suffered a loss of 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 losses.
This is 41% higher than last year (FY24), when the loss was Rs 74,812 crore. SEBI has released a study regarding this.
The average loss of every 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 was 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.
Damage in four years about 2.87 lakh crore rupees
In the last four years, the total loss of retail traders has been around Rs 2.87 lakh crore.
40,824 crore rupees in FY22
65,747 crore rupees in FY23
74,812 crore rupees in FY24
1.06 lakh crore rupees in FY25
This shows that the loss is increasing every year.
SEBI tightened the rules, but the loss did not reduce
SEBII is trying to make investors aware and to tighten the rules. SEBI has tightened some rules since November 2024. Such as decreasing weekly expiry, increasing lot size, and increasing trading margin. Also, he is also increasing the monitoring of big players.
What is derivatives trading?
Derivatives trading means to invest in complex products like futures and options (F&O). This is a high risk game in the stock market. This is not easy for the common people and most people lose money in it.
Future: This is a kind of contract, in which you promise that in future, on a certain date, you will buy or sell a share or index (eg bank Nifty) at a fixed price.
This contract is valid to a certain date (expiry). In this, you do not have to pay the full amount at the time of the deal, only margin (about 10-20%).
Example:
Suppose, you buy 1 contract of bank Nifty futures, which is trading at 48,000. If the lot size is 15, then its Nural Value: 48,000 × 15 = ₹ 7,20,000.
It does not have to pay the entire amount, only margin (about 10-20%), such as ₹ 1,00,000. If the bank Nifty reaches 49,000 by expiry, your profit will be: (49,000 – 48,000) × 15 = ₹ 15,000.
But if the index falls to 47,000, you will suffer a loss of ₹ 15,000.
Options: This is also a derivative contract, but it gives you the right (not promised) that you can buy a share or index in a fixed price (strike price) (call option) or sell (put option). Whether you use this right or not, it is your will.
Example:
Suppose the bank is at the Nifty at 48,000, and you buy a put option with a strike price of 47,500 and the premium is ₹ 200 per lot. If the lot size is 15 then premium:
₹ 200 × 15 = ₹ 3,000.
If the bank Nifty comes at 47,000 on expiry, your put option will be in profit: (47,500 – 47,000 – 200) × 15 = ₹ 4,500 (profit).
But if the bank Nifty goes to 48,500, your option will be useless, and you will take a loss of just ₹ 3,000 (premium).
65% to 85% of brokers come from Revenue F & O
Stock brokers generate most of their revenue from Future and Options Trading, which is close to 65% to 85%. Last year, Nitin Kamath, founder of Brokerage firm Ajodha, said that the regulatory changes that restricted SEBI’s F&O could affect brokers’ revenue badly.
