What percentage of F&O traders lose money in India?

SEBI found 90.9% of individual equity derivatives traders made net losses in FY25 and 87.7% in FY26, and 93% over FY22-FY24 (including transaction costs).

Do charges cause F&O losses?

They are a large part. SEBI found individuals paid about ₹50,000 crore in transaction costs over FY22-24, against total losses of over ₹1.8 lakh crore.

Are options riskier than futures for individuals?

In SEBI's FY26 data, 87.7% of individual options traders lost money compared with 66% of futures traders, and options were 92% of individual losses.

Is it possible to make money in F&O?

Some individuals do, but SEBI found only 1% made more than ₹1 lakh over FY22-24 after costs. Anyone promising regular F&O profits is a warning sign.

Guide · Indian F&O

Why most F&O traders lose money

This is not an opinion. SEBI has studied the profit and loss of every individual trader in India's equity derivatives segment, and the result has been the same for years: about 9 in 10 lose money. Here is what the studies found and what it means for you.

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The numbers, from SEBI

FY22 to FY24: 93% of over 1 crore individual F&O traders lost money, with average losses of about ₹2 lakh per trader including transaction costs. Total losses were over ₹1.8 lakh crore. Only 1% made more than ₹1 lakh after costs. (SEBI press release, 23 Sep 2024)
FY25: 90.9% of individual traders made net losses. FY26: 87.7%. Total net losses were ₹91,685 crore in FY26 and a revised ₹1.12 lakh crore in FY25. (SEBI study, August 2026)
Options were 92% of individual losses in FY26. 87.7% of options traders lost money, against 66% of futures traders.
More than 75% of loss-making traders kept trading the next year (FY22-24 study).

Reason 1: costs are paid on every trade

From FY22 to FY24, individuals paid about ₹50,000 crore in transaction costs while losing over ₹1.8 lakh crore - so costs were a large share of the losses. In FY25 and FY26, individuals paid about ₹25,000 crore in transaction costs each year, and on average a trader paid ₹26,000 in costs in FY24. A trader who trades many times a day pays these costs many times a day.

Reason 2: most trading is in options on expiry day

SEBI found that in FY25, 70% of index options turnover happened on the expiry day itself, and 98% within a week of expiry. Options close to expiry can go to zero in hours. Buying them is like buying many cheap lottery tickets; selling them collects small amounts with the risk of a sudden large loss.

Reason 3: the other side is better equipped

SEBI reported that most profits in F&O were made by proprietary traders and foreign investors using algorithms - 99% of FPI and proprietary trader profits in FY26 came from 'algo entities'. Individual traders are mostly trading against fast, well-funded firms.

Reason 4: size and small accounts

About 78% of derivatives traders had equity portfolios below ₹1 lakh, yet that group made 70% of total losses in FY25-26. Traders with portfolios under ₹1 lakh but turnover above ₹1 crore were 13% of traders and 52% of losses. Small accounts trading big turnover is the pattern behind most losses.

What you can do about it

Know your charges before you trade. Work out the cost per round trip and multiply by your trades per month.
Know your loss before you trade. Loss at the stop, in rupees and as a % of your account.
Keep risk per trade small and set a daily loss limit you never move.
Keep a journal of every trade, with charges, and review it monthly.
Learn first. Understanding options decay near expiry and position sizing costs nothing.

Who loses most

SEBI's August 2026 study adds detail. In FY26, 89% of traders below 30 years were loss-makers, compared with 81% of traders above 60. About three-quarters of individual derivatives traders declared income below ₹5 lakh a year; that group made 43% of turnover but 53% of losses. The average loss among loss-makers (₹1.47 lakh) was 21% bigger than the average profit among profit-makers (₹1.22 lakh).

Questions to ask yourself before your next F&O trade

Do I know my total charges last month?
Do I know my loss at the stop, in rupees, before entering?
Is this an expiry-day option that can go to zero today?
Would I take this trade if I had lost the last three?
Am I trading to win back a loss?

General information about the past and about your own numbers. Not financial advice and not a recommendation. It does not consider your goals or situation.

Frequently asked questions

What percentage of F&O traders lose money in India?: SEBI found 90.9% of individual equity derivatives traders made net losses in FY25 and 87.7% in FY26, and 93% over FY22-FY24 (including transaction costs).
Do charges cause F&O losses?: They are a large part. SEBI found individuals paid about ₹50,000 crore in transaction costs over FY22-24, against total losses of over ₹1.8 lakh crore.
Are options riskier than futures for individuals?: In SEBI's FY26 data, 87.7% of individual options traders lost money compared with 66% of futures traders, and options were 92% of individual losses.
Is it possible to make money in F&O?: Some individuals do, but SEBI found only 1% made more than ₹1 lakh over FY22-24 after costs. Anyone promising regular F&O profits is a warning sign.

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