F&O trading: 'New' or 'Regular', majority of them incurred losses in FY24, shows Sebi data

The losses incurred stayed deep even as markets clocked new highs, as the Sebi data showed that the loss makers made deeper losses than the profits made by profit makers.

Nearly half of all the F&O traders were 'New' in FY24, but the derivative market did not discern when it came to losses, as even 'Regular' traders racked up significant net losses, showed a new study released by capital market regulator Sebi.

42 lakhs F&O traders who placed their bets for the first time in three years in FY24 were classified as 'New Traders' by Sebi, and comprised almost half of all the traders for the fiscal year. Sebi's data showed that 92.1% of these 'New Traders' incurred a net loss of roughly Rs 46,000 per person in FY24. In comparison, 'Regular Traders' - those who traded for all three consecutive years between FY22-24 - made up 25% of all the traders, and over 88% of them incurred losses on an average of Rs 1.50 lakh per person, during FY24.

The losses incurred were deep even as markets rallied during last fiscal, as the Sebi data showed that the loss makers made deeper losses than the profits made by profit makers. During FY24, loss making trader incurred losses of Rs 1.20 lakh per person, while profit making traders made profits of Rs 1.03 lakh per person.

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The transaction cost too pinched the loss making traders more, as data showed that losing traders bore roughly 27% of transaction cost, over and above their loss in FY24, while profitable traders incurred only about 22% of transaction costs as percentage of gross profits.