Around 88.5% traders under 30 years of age have incurred losses in futures and options trading, according to a recent study by capital markets regulator SEBI.
Traders under 30 accounted for 43% of the trader base in FY26, while low-income traders have majorly remained active in the derivatives market, trading at an intensity of 75 times their portfolio value.
Around 73% traders have annual incomes below Rs 5 lakh. This section accounted for 53% of aggregate losses. The share of loss-makers was generally highest among traders with annual income below Ts 10 lakh, particularly in the lower and medium capital-employed categories, where loss-maker shares frequently exceeded 90%.
According to the study, trading intensity, which is the ratio of derivatives turnover to underlying equity portfolio has dropped consistently with age.Trading intensity was significantly higher among younger and lower-income traders.Traders below 30 years generated derivatives turnover of about 93 times their equity portfolio, compared with around 20 times among traders above 50 years.
Meanwhile, B30 cities, or locations beyond India’s top 30 financial centres, consists of 67% of individual derivatives traders and accounted for 58% of total retail derivatives losses. In terms of states, Maharashtra, Gujarat and Uttar Pradesh together contributed to 41% of total net losses.