Indian Retail F&O Traders Lost $40.36B in 5 Years, With Losses Every Year

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SEBI research finds Indian retail F&O traders lost $40.36 billion between FY22-FY26 with losses every year, about 90-91% of individual traders losing money; losses peaked in FY25 and fell ~18% in FY26 after participation dropped nearly 20% following SEBI regulatory measures. Crypto metrics show a split with 50.91% of spot traders profitable versus just 18.41% of futures winners, and regulatory curbs pushed activity offshore to unregulated CEXs/DEXs, raising average losses and signaling risks to retail adoption.
- Indian retail F&O traders lost $40.36B from FY22–FY26, with losses recorded every year.
- Crypto shows a split picture with 50.91% spot profitability, but only 18.41% of futures traders win.
- Regulatory curbs cut participation by 20%, but average losses rose as activity shifted offshore.
According to Securities and Exchange Board of India (SEBI) research, Indian retail Futures & Options (F&O) traders recorded net losses in every financial year from FY22 to FY26. They accumulated losses of $40.36 billion (₹3.85 lakh crore), based on data from the top 15 brokers covering around 90% of retail/individual investors.
This equates to approximately 9 of 10 (90-91%) individual traders losing money in a typical year. The losses peaked in FY25, but declined by nearly 18% in FY26 due to a reduction in participation of nearly 20% after SEBI measures like higher c…
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