F&O is proving to be a constant threat to investments during FY 2022-2024. During FY 2024, 73 lakh investors have reported losses in F&Ds. In which the average loss amount per person is Rs.1.2 lakh.
According to a SEBI study, 93% or 1 crore investors suffered losses of up to Rs 2 lakh during the financial year 2022 to 2024. Overall this loss amounts to around Rs.1.8 lakh crore. During FY 2024, there was a total loss of around Rs.75,000 crore. According to a Sebi study, around 4 lakh traders reported losses of around Rs 28 lakh during this period, including transaction costs.
On the other hand, only 7.2% of individual F&O traders reported a profit during the three-year period and only 1% of individual traders managed to make a profit of up to Rs.1 lakh. In addition, the number of individual traders or retail traders has doubled to 96 lakh during FY 2024 from 51 lakh during FY 2022.
Statistically, they were also in the majority when this type of investor accounted for around 30% of the total turnover during FY 2024. 99.8% of the total traders in the F&O segment were individuals. According to SEBI, retail investors are actively trading options and futures contracts due to the availability of trading platforms and low transaction costs.
Image Credit: (Divya-Bhaskar): Images/graphics belong to (Divya-Bhaskar).
