India's retail derivatives market is growing rapidly, but the numbers behind that growth make for uncomfortable reading. SEBI's latest FY26 study found that 87.7% of individual traders in equity derivatives incurred net losses, with aggregate losses touching nearly Rs 91,685 crore. Options accounted for the overwhelming majority of those losses.
For retail traders, the problem may not always be a lack of market knowledge or access to information. In a fast-moving derivatives market, hesitation, emotional decisions, overtrading and inconsistent execution can turn even a sound strategy into a losing one.
