India’s retail derivatives market has expanded rapidly, but the numbers behind that growth are sobering. More than 90% of individual F&O traders lost money between FY22 and FY24, with cumulative retail losses estimated at around ₹1.8 lakh crore. At the same time, algorithmic trading has become deeply embedded in the broader market, accounting for a significant share of both cash and derivatives activity.
So, could automation be the missing piece for retail traders? Rakesh Pujara, Founder and Managing Partner, Compounding Wealth Advisors LLP, believes the biggest shift is not that retail traders are suddenly becoming more sophisticated, but that tools once available primarily to institutions are now becoming accessible to individuals. APIs, AI-assisted strategy builders, backtesting platforms and cheaper infrastructure are lowering the barriers to algorithmic trading.
