Study Reveals 88.5% of Traders Under 30 Experience Losses, Predominantly from Low-Income Backgrounds

A recent study conducted by the Securities and Exchange Board of India (SEBI) reveals concerning trends regarding traders in the futures and options (F&O) segment. According to the findings, an alarming 88.5% of traders aged under 30 incurred losses during the financial year 2025-26, with a significant majority from lower-income groups. The total losses attributed to these traders amounted to a staggering ₹91,685 crore, indicating a considerable financial impact on young and potentially inexperienced investors.

This study highlights a shift in participation in the derivatives market, marking the first decline in trader numbers in four years. The reduction in F&O trading participation has been reported to decrease by approximately 20%, reflecting SEBI’s recent regulatory measures aimed at curtailing trading activities by making them less accessible and thereby promoting a cautious trading environment.

Moreover, despite the drop in participation, retail traders collectively incurred substantial transaction costs, totaling ₹25,000 crore for the year, even amidst significant financial losses. The high cost of trading suggests that many participants may not fully grasp the risks associated with these financial instruments.

In response to these findings, SEBI is expected to enhance education and regulation in the derivatives market to better protect inexperienced traders and mitigate future losses. As the market evolves, continued vigilance and informed trading practices will be essential for safeguarding the interests of retail investors, particularly those in vulnerable financial positions.