Loss makers of Dalal Street: 9 out of 10 individual F&O traders lost money in FY22, says Sebi

As many as 89 per cent of the individual traders lost their money in the F&O segment in FY22; they witnessed an average loss of Rs 1.1 lakh during the year, according to market regulator Securities and Exchange Board of India.

While releasing a detailed study on the P&L of individual traders in the F&O segment, the market further on January 25 highlighted that the total number of unique individual traders who traded through the top 10 brokers in equity F&O segment jumped over 500 per cent to 45.2 lakh during FY22 as against 7.1 lakh during FY19.

“During FY22, 11 per cent of individual traders in equity F&O segment made a profit with an average profit of Rs 1.5 lakh. The percentage went down marginally to 10 per cent for active traders, though the average profit made by them went up to Rs 1.9 lakh during the same period,” Sebi said.

The market watcher further highlighted that 90 per cent of the active traders incurred average losses of Rs 1.25 lakh in FY22.

The study also showed that individual traders belonging to the age group 30-40 years had the highest share in participation (39 per cent) across all age groups in FY22. For younger individual traders (20-30 years), the percentage share of participation went up significantly from 11 per cent during FY19 to 36 per cent during FY22. The trading by individual traders in the equity F&O segment were dominated by males (over 80 per cent) during both years.

Over and above the net trading losses incurred, loss makers expended an additional 28 per cent of net trading losses as transaction costs in FY22. “Even those making net trading profits, incurred between 15 per cent-50 per cent such profits as transaction cost. However, the percentage was significantly low at 6 per cent for non-active traders who made a profit,” Sebi said.