Analysis of Profits & Losses in the

Equity Derivatives Segment (FY22-FY24)

Department of Economic and Policy Analysis

 Analysis of Profits & Losses in the Equity Derivatives Segment (FY22-FY24)

Table of Contents

EXECUTIVE SUMMARY .................................................................................................................... 2

1. OBJECTIVE OF THE STUDY ..................................................................................................... 5
2. BACKGROUND ........................................................................................................................... 6
3. DATA COLLECTION AND OVERVIEW ................................................................................ 8
4. METHODOLOGY ........................................................................................................................ 9
5. DATA ANALYSIS AND FINDINGS ...................................................................................... 11
SECTION 1: ENTIRE POPULATION DATA OF NSE F&O SEGMENT (ALL BROKERS,
ALL INVESTOR CATEGORIES) ................................................................................................. 11
5.1. Category-wise Profit & Loss for FY24 ............................................................................. 11
SECTION 2: SELECT SAMPLE (SAMPLE OF TOP 15 BROKERS, INDIVIDUAL
CATEGORY INVESTORS) ........................................................................................................... 14
5.2. Proportion of Loss-Makers ............................................................................................... 14
5.3. Amount of Losses by Individual Category Traders...................................................... 15
5.4. Transaction Costs (TC) ...................................................................................................... 16
5.5. Aggregate Amount of Profit & Loss in F&O during FY22-FY24................................. 17
5.6. Product Preference ............................................................................................................. 20
5.7. Average Trade Size – Options Segment.......................................................................... 21
5.8. Size Wise Trends – Options Segment .............................................................................. 21
5.9. Age Wise Trends ................................................................................................................ 22
5.10. Income Wise Trends ...................................................................................................... 23
5.11. Gender Wise Trends ...................................................................................................... 25
5.12. Profit-Makers vs. Loss-Makers ..................................................................................... 26
5.13. New Traders vs. Regular Traders ................................................................................ 27
5.14. Geographic Spread......................................................................................................... 28
5.15. Trading Behavior and Persistence ............................................................................... 30
6. ANNEXURES ............................................................................................................................. 31
6.1. Trends based on Trading Activity in Options in FY24 ................................................. 31
6.2. State-wise distribution of F&O Traders .......................................................................... 32

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 Analysis of Profits & Losses in the Equity Derivatives Segment (FY22-FY24)

EXECUTIVE SUMMARY

Individual Category Loss-Makers (FY24):

1. 91.1% of individual traders (about 73 lakh traders) lost money in the F&O segment in FY24.

2. 73 lakh loss-making traders, on an average, experienced net losses1 of ₹1.20 lakh per

person in FY24 (inclusive of transaction costs).

Individual Category Loss-Makers (during study period i.e. FY22-FY24):

3. During FY22-FY24, 1.13 crore unique Individual traders incurred a combined net loss (i.e.

trading loss inclusive of transaction costs) of ₹1.81 lakh crore in F&O. In FY24 alone,

Individuals incurred about ₹75k crore in net losses.

4. More than 1 crore loss-making traders (92.8% of individual traders) lost, on an average,

about ₹ 2 lakh per person in the F&O over the period of three years.

5. Top 3.5% of loss-makers, approximately 4 lakh traders, faced an average loss of ₹28 lakh

per person over the same period, inclusive of transaction costs.

6. Only 7.2% of Individual F&O traders made a profit over the period of three years.

7. Only 1% of individual traders managed to earn profits exceeding ₹1 lakh, after adjusting

for transaction costs.

Major Category-wise P&L Pattern2:

8. While, Individuals made losses in F&O, the FPIs and Proprietary traders earned profits.

The Proprietary traders earned about ₹33,000 crore of gross profits (i.e. trading profits

before accounting for transaction costs) in F&O segment in FY24, followed by FPIs who

earned about ₹28,000 crore in gross profits. Against this, Individuals and others incurred

a loss of over ₹61,000 crore in FY24 (before accounting for transaction costs).

9. Majority of profits for FPIs and Proprietary traders were made by “Algo entities”3. 97%

profits of FPIs and 96 % profits of Proprietary traders came from Algo entities in FY24.

1
Net Losses means trading losses inclusive of various transaction costs.
2
This analysis is based on the entire population of F&O traders. Further, the P&L represent only squared off gross
P&L (i.e not adjusted for transaction costs and not considering the open positions at the end of FY24).
3
Algo entities are considered as those entities, who have done at least one trade in a year using algorithmic order.
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 Analysis of Profits & Losses in the Equity Derivatives Segment (FY22-FY24)

Product Preference:

10. 99.3% of the F&O traders traded Options at least once during the last three years.

11. The percentage share of F&O traders, who traded Futures at least once during a year, has

come down to 5.9% in FY24 from 10.6% in FY22.

Transaction Costs (TC):

12. Individuals incurred more than ₹50,000 crores in transaction costs for trading in F&O

during FY22 to FY24. Of which more than half (about ₹25,000 crore) was in the form of

brokerage, followed by ₹13,800 crores to the Government in the form of STT, GST and

Stamp duty and ₹10,200 crore in the form of Exchange fees.

13. On an average, individual traders spent ₹26,000 per person on F&O transaction costs in

FY24.

14. Nearly 71% of transaction cost was in the form of Brokerage (51% of TC) and Exchange

Fees (20% of TC).

Product-wise, Activity-wise:

15. Percentage of Individuals making losses in Futures contracts is consistently lower than

those making losses in Options contracts throughout the study period. In FY24, about 60%

of traders made net losses in Futures, compared to 91.5% in Options.

16. Higher trading activity was associated with a higher percentage of loss-makers. The

proportion of loss makers was highest (95% of total traders) in “High-Value”4 traders,

compared to “Mid-size” traders (93.8%) and “Small-size” traders (91.5%).

Demographic Trends:

17. The proportion of young traders (having age less than 30 years) trading in F&O has

increased significantly from 31% in FY23 to 43% in FY24. Nearly 93% of these young

traders incurred losses in F&O in FY24, higher than the average loss makers of 91.1% in

FY24.

18. Over 75% of individual F&O traders (65.4 lakh traders) in FY24 had declared annual

income of less than ₹5 lakh.

4“High-Value” Traders is defined as the trader who recorded combined premium turnover of more than ₹ 1 crore in Options
during FY22 to FY24. “Mid-Size” trader means trader having combined turnover between ₹1 Lakh and ₹1 crore. “Small-
Size” trader means trader having combined turnover of less than ₹1 Lakh over three years’ period.
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 Analysis of Profits & Losses in the Equity Derivatives Segment (FY22-FY24)

19. The proportion of “Low_Income” traders (having annual income less ₹5 lakh) has increased

significantly from 71% in FY22 to 76% in FY24.

20. The proportion of ‘Female’ traders participating in F&O has decreased from 14.9% in FY22

to 13.7% in FY24. Compared to ‘Male’ traders, less proportion of ‘Female’ traders incurred

losses. While 91.9% ‘Male’ traders made losses in F&O in FY24, 86.3% percentage of

‘Female’ traders made losses in F&O.

21. Individuals from Beyond Top 30 (B30) cities made up over 72% of the total F&O trader

base in FY24, a higher proportion compared to mutual fund investors, 62% of whom are

from B30 cities.

22. For every 100 Mutual Fund investors, there were 28.6 F&O traders from B30 cities and 17.8

F&O traders from T30 cities in FY24.

23. More than 50% of all the F&O traders, who traded in FY24, were from top four states

namely Maharashtra, Gujarat, Uttar Pradesh and Rajasthan. 21.7% of F&O traders (or 18.8

lakh F&O traders) were from Maharashtra followed by Gujarat (10.1 lakh or 11.6%), UP

(9.3 lakh, or 10.7%) and Rajasthan (5.4 lakh or 6.2%).

New Traders:

24. Almost half of all the F&O traders in FY24 (42 lakh traders) were “New_Traders” (i.e.

traders who traded for the first time in three years in the equity F&O segment). 92.1% of

these “New_Traders” experienced losses and on an average, experienced a net loss of about

₹46,000 per person in FY24.

Persistence:

25. More than 75% of the loss-makers persisted with the trading in F&O, despite making

losses in preceding two consecutive years.

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 Analysis of Profits & Losses in the Equity Derivatives Segment (FY22-FY24)

1. OBJECTIVE OF THE STUDY

This study is an extension of the earlier study published by SEBI in January 2023 titled “Profit

& Losses of Individuals in the Equity Derivatives segment”5 for the period FY19 and FY22, to

see if there has been any significant pattern in the Profit and Loss of Individual category. In

the said study, it was found that 9 out of 10 Individual investors made losses in derivatives.

With rising participation of individual investors in both equity and equity derivatives and

exponentially growing volumes in the derivatives in the recent past, it was felt necessary to

understand the changing pattern in the profits and losses of all categories of investors

(including Individual Investors). More attention is given to the Individual category investors,

as almost 99.8% of the F&O participants are Individuals.

This follow-up study aims to analyze,

a) Changes in the P&L pattern of Individuals, since last SEBI study for FY19 and FY22;

b) The pattern in trading behavior and profits and losses of different categories of

investors (viz. FPI and Prop trader) in the equity Futures and Options (F&O) segment;

c) The pattern in profits and losses of Individual category investors, factoring in

demographics and other factors such as trading activity and product preference.

5
https://www.sebi.gov.in/reports-and-statistics/research/jan-2023/study-analysis-of-profit-and-loss-of-
individual-traders-dealing-in-equity-fando-segment_67525.html#
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 Analysis of Profits & Losses in the Equity Derivatives Segment (FY22-FY24)

2. BACKGROUND

India’s derivatives market has witnessed remarkable growth since its inception in June 2000,

when the National Stock Exchange (NSE) launched trading in Index Futures. The market

quickly expanded with the introduction of Index Options, Stock Futures, and Stock Options.

The derivatives product became popular and derivatives market became integral part of the

Indian financial system, facilitating hedging, speculation, and price discovery in the financial

system to various categories of investors.

Over the past two decades, India has evolved into one of the largest and most liquid

derivatives markets in the world, driven by increasing participation from retail investors,

Foreign Portfolio Investors (FPIs), and proprietary traders. This expansion was facilitated by

technological advancements, regulatory reforms, and the growing need for risk management

tools in a rapidly evolving financial landscape.

The derivatives market, particularly the equity segment, has seen an exponential rise in

trading volumes. This growth can be attributed to several factors, including heightened

market awareness, improved access to financial products, and increasing volatility in asset

prices. The ability to hedge risk efficiently, leverage positions with minimal capital, and

speculate on price movements without owning the underlying asset has made derivatives an

attractive tool for a wide range of market participants.

In recent years, the rise in algorithmic trading and the increasing participation of individual

retail investors in the derivatives space have further propelled the market’s growth. The

availability of sophisticated trading platforms and lower transaction costs have enabled retail

investors to actively trade in Options and Futures contracts, contributing to the surge in

market liquidity. A rise of Individual traders’ participation in the F&O segment has also kick-

started a debate on product suitability and the need for safety nets and firewalls for Individual

investors. The number of Retail traders, or Individual traders (Individuals) have almost

doubled in two years from about 51 lakhs in FY22 to about 96 lakhs in FY24. Although they

contributed about 30% in total turnover in FY24, they are a clear majority in number terms, as

99.8% of total traders in the equity F&O segment are Individuals.

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 Analysis of Profits & Losses in the Equity Derivatives Segment (FY22-FY24)

Table 1: Percentage share of Individual category in the Equity F&O segment

Investors in F&O (in lakh) Notional Turnover in F&O segment

Year
(in ₹Lakh Crore)
% of % of Total
Individual Total Individual Total
Total
FY22 51.35 51.51 99.7% 12,125 33,905 35.8%
FY23 66.96 67.13 99.7% 26,531 76,447 34.7%
FY24 95.75 95.93 99.8% 48,479 1,59,855 30.3%
Note: Please note that the turnover is computed as two sided Notional Turnover, i.e. sum of notional
turnover of buyer as well as that of seller.

Further, compared to Mutual Fund investors, the number of Individual F&O traders have

grown faster. In FY22, there were 20 derivatives traders for every 100 Mutual Fund investors,

in FY24, that number has gone up to 24.5.

Therefore, this rapid growth in F&O trading activity has once again highlighted the need for

investor education and risk management practices, as a significant proportion of retail traders

continued to incur losses in the market. SEBI study in 2023 highlighted that 89% of individual

traders in the F&O segment lost money in FY22. These traders, on average, experienced net

losses of ₹1.10 lakh during the study period, underscoring the high-risk nature of derivatives

trading for individuals.

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 Analysis of Profits & Losses in the Equity Derivatives Segment (FY22-FY24)

3. DATA COLLECTION AND OVERVIEW

For Section 1 (Entire Population)

For this section, category-wise data of all investor categories that traded in the equity F&O

segment of NSE during FY24 is collected. For this section, the categories are classified as

under,

Table 2: Definitions of categories for Section 1 Data

Category Major Entities

FPI FPI-all categories, FVCI, QFI, etc.
Mutual Fund, Banks, NBFC, Insurance Companies, AIFs, Domestic
DII
Financial Institutions, etc.
Proprietary
Trading Member, who itself trade in F&O in its own account
Traders
Individuals, HUF, Proprietorship Firm, Partnership Firm, Limited
Individuals
Liability Partnership Firm
Corporates, Trusts, Society, NRI, PMS clients, Non Govt.
Others
Organization

For Section 2 (Select sample of top 15 brokers)

For this section, individual client-wise (which includes HUF and NRIs but excludes

Proprietary traders, institutions, partnership firms, corporates etc.) data of realized net

trading profit /loss incurred during FY22, FY23 and FY24 has been collected from the top 15

brokers (based on individual traders’ turnover for the period FY24) in equity F&O segment of

NSE. These top 15 brokers account for nearly 90 percent of total individuals and about 75

percent of the individual client level turnover in NSE equity F&O segment during FY24.

Table 3: Sample of Investors from Top15 brokers

No of Individual Investors in F&O (in lakh)

Year

Sample Actual % of Total

FY22 42.74 51.35 83.2%
FY23 58.35 66.96 87.1%
FY24 86.26 95.75 90.1%
Notes: 1. Sample means clients of Top15 broker; Actual means – Total traders in the F&O segment of
NSE;

It may be noted that the sample of earlier SEBI study was based on Top 10 brokers, whereas

that of current study is based on the sample collected from Top 15 brokers.

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 Analysis of Profits & Losses in the Equity Derivatives Segment (FY22-FY24)

4. METHODOLOGY

In order to analyse the net profit/ loss6 of individual traders dealing in the equity F&O

segment, data has been collated from top 15 brokers with respect to realized gross and net

trading profit/loss, transaction cost, number of transactions carried out during the analysis

period, various demographic parameters which includes age, gender, and city. Further, the

data fields (as given in the table below) have been divided into subcategories, in order to have

a holistic as well as an in-depth view of the P&L of individual traders across different

categories.

Table 4: Description of Data fields

Data Fields/
Sl. No. Sub-category
Parameters
1 Product Category Index Options, Stock Options, Index Futures, Stock Futures

2 Age <30, 30-40, 40-50, 50-60, >60 (years)

3 Income <5 Lakh, 5-10L, 10-25L, 25-50L, 50-100L, >100L

4 Gender Male/ Female

5 Tier_Cities Tier I, Tier II, Tier III *

6 T30_B30_Cities Top 30 Cities, Beyond 30 Cities #

Notes:
a) Tier I (The following 7 cities considered - Banglore, Delhi, Chennai, Hyderabad, Mumbai,
Pune, Kolkata).
b) Tier II (The following 20 cities considered - Amritsar, Bhopal, Bhubaneswar, Chandigarh,
Faridabad, Ghaziabad, Jamshedpur, Jaipur, Kochi, Lucknow, Nagpur, Patna, Raipur, Surat,
Visakhapatnam, Agra, Ajmer, Kanpur, Mysuru, Srinagar),
c) Tier III (The following 19 cities considered - Etawah, Roorkee, Rajamundry, Bhatinda, Hajipur,
Rohtak, Hosur, Gandhinagar, Junagadh, Udaipur, Salem, Jhansi, Madurai, Meerut, Mathura,
Bikaner, Cuttack, Vijayawada, Nashik).
d) * - A pin code mapping has been done for these cities as per the information available in
https://data.gov.in/ in order to maintain consistency across all the brokers.
e) # - Top 30 cities classification is as per the pin code mapping provided by AMFI.

 Sample Brokers: Top 15 brokers (brokers were identified on the basis of largest percentage

share of individual traders’ turnover in equity F&O segment of NSE during FY24)

 Client-set: Individual Clients (which includes HUF and NRIs; excludes Proprietary

traders, institutions, partnership firms etc.)

6
Net Profit/Loss: Net trading P/L – Transaction Cost
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 Analysis of Profits & Losses in the Equity Derivatives Segment (FY22-FY24)

 Period: FY 2021-22 to FY 2023-24

 Segment: Equity F&O Segment

 Variables: Product category, Age, Income, Gender, Pincode, Net trading Profit/Loss,

Transaction cost

 Losses: Unless otherwise mentioned Losses in this report means “Net Losses” (after

adjusting for transaction costs.

 For computation of profit/loss- realized profit/loss during the period is considered.

 For clarity w.r.t cases where 1 leg of transaction falls under the study period, while, other

falls outside, explanation is given as under-

 Example 1: Period: FY 2021-22; Consider Contract-A with expiry in April 2021.

Contract-A purchased & sold during March 2021 - will not be considered

Contract-A purchased during March 2022, sold during April 2022/ settled on

expiry - will be considered.

 Contracts resulting in physical delivery of stocks are excluded.

 For PIN Codes correspondence address is considered.

It may be noted that the results of Section 1 (entire population at NSE) and Section 2 (sample

of top 15 brokers) are not strictly comparable. The difference in the data is as given in the table

below,

Table 5: Difference in Section1 and Section 2 data

Section 1 Section 2
(Entire population of NSE F&O) (Sample of top 15 brokers)
Exchange data Only NSE Both NSE and BSE
Brokers data All Brokers at NSE Top 15 Brokers in F&O
Individual Category Individuals, HUF, Proprietorship Individuals, HUFs and NRIs
Definition firms, Partnership Firm, Limited
Liability Partnership Firm
No. of Individual 95.75 lakh 86.26 lakh
Investors
Gross Loss of ₹ 41,544 crore ₹ 52,361 crore
Individuals in FY24

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 Analysis of Profits & Losses in the Equity Derivatives Segment (FY22-FY24)

5. DATA ANALYSIS AND FINDINGS

SECTION 1: ENTIRE POPULATION DATA OF NSE F&O SEGMENT (ALL BROKERS,

ALL INVESTOR CATEGORIES)

 This section is based on the entire population of 95.7 lakh traders in the equity F&O

segment of NSE for FY24. Further, the P&L represent only squared off gross P&L (i.e.

not adjusted for transaction costs and not considering the open positions at the end of

FY24).

5.1. Category-wise Profit & Loss for FY24

 In FY24, the Proprietary traders’ category earned the highest gross profit7 (i.e. trading

profits before accounting for transaction costs) of about ₹33,000 crore in the equity

F&O segment of NSE, followed by Foreign Portfolio Investors (FPIs) category (₹28,000

crore). Domestic Institutional Investors (DIIs) earned modestly in the F&O to the tune

of ~ ₹200 crore in gross profits. On the other hand, the Individual category experienced

the highest gross loss of ~ ₹41,500 crore, while ‘Others’ category (which represented

mostly Corporates, Trusts, NRIs and PMS clients) incurred a gross loss (i.e. trading

loss before accounting for transaction costs) of ~ ₹19,700 crore.

Chart 1: Gross P&L in Equity Derivatives Segment- FY24 (Amount in ₹Crore)

33,037
27,965

210

Proprietary FPI DII Others Individuals

-19,668

-41,544

Source: NSE

 However, there was a diverging pattern in profit and loss in Futures vis-à-vis Options

for Individuals. While, Individuals made losses in Options to the tune of ~ ₹55,000

crore in FY24, they made profits to the tune of about ~ ₹13,400 crore in Futures.

7
Gross profit means trading profits before accounting for transaction costs
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 Analysis of Profits & Losses in the Equity Derivatives Segment (FY22-FY24)

Chart 2: Gross P&L in Equity Derivatives Segment- FY24 (Futures vs Options)

(Amount in ₹`000 crore)
27.3
21.4
13.4
5.8 6.6 6.2
0.1 0.1

Proprietary FPI DII Others Individuals

-25.9

Futures Options
-55.0
Source: NSE

 FPI and Proprietary traders mainly traded through algorithms (commonly known as

Algorithmic Trading). 306 out of 376 FPIs traded through algorithms, while 347 out of

626 Proprietary traders traded through algorithms. On the other hand, only 13% of

95.7 lakh individual traders traded through algorithms. This 13% proportion is

overstated because it also includes those clients, who had experienced forced

liquidation by the brokers (usually post 3.20 pm) to square-off intraday positions,

using algorithmic trading.

Table 6: Number of Investors in F&O segment of NSE during FY24

Number
Category of Algo / Non
of Futures Options Derivatives
Investors Algo
Traders
Algo 281 203 306
FPIs 376
Non_Algo 44 59 70
Algo 274 277 279
Proprietary 626
Non_Algo 313 328 347
Algo 31 27 33
DIIs 48
Non_Algo 10 13 15
Algo 1,07,211 12,44,182 12,44,936
Individuals# 95,75,473
Non_Algo 5,64,771 82,44,133 83,30,537
Algo 1,138 1,659 1,725
Others## 14,162
Non_Algo 6,829 11,078 12,437
Algo 1,08,935 12,46,348 12,47,279
Total 95,90,685
Non_Algo 5,71,967 82,55,611 83,43,406
Note: 1. For the purpose of this study, Algo entities are classified as those entities, who have done at least one
trade in a year using algorithmic order. 2. “Individuals” includes Individuals, HUF, Proprietorship firms,
Partnership Firm. 3. “Others” includes Corporates, Trusts, Society, NRI, PMS clients.
Source: NSE

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 Analysis of Profits & Losses in the Equity Derivatives Segment (FY22-FY24)

 The majority of profits of FPIs and Proprietary traders in F&O was earned by Algo

entities. Algo entities are defined as those entities, who have done at least one trade in

a year using algorithmic order. “Others” category, which includes mainly Corporates,

NRIs and Trusts, made losses with Algos, but profit without Algos.

 97% profits of FPIs and 96% profits of Proprietary traders came from Algo entities.

Chart 3: Gross P&L in Equity Derivatives Segment- FY24 (Algo vs Non-Algo

entities) (Amount in ₹`000 crore)

32.0
26.9

4.9
1.1 1.1 0.2 0.0

Proprietary FPI DII Others Individuals

-13.9

-24.5
-27.7
Algo Non-Algo

Note: 1. Algo entities are classified as those entities, who have done at least one trade in a year using algorithmic
order. 2. Some Individuals are also considered as Algo entities, if their broker has squared off their position using
Algo.
Source: NSE

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 Analysis of Profits & Losses in the Equity Derivatives Segment (FY22-FY24)

SECTION 2: SELECT SAMPLE (SAMPLE OF TOP 15 BROKERS, INDIVIDUAL CATEGORY

INVESTORS)

 This section onwards, the analysis is based on a sample of 15 brokers and limited to

Individual investors. Individuals means Individuals, HUFs and NRIs. The period of

this study is from FY22 to FY24.

5.2. Proportion of Loss-Makers

 In FY24, 91.1% individuals made net losses (i.e. trading losses inclusive of transaction

costs) in F&O, compared to 91.5% in FY23 and 90.2% in FY22. In terms of gross P&L

(i.e. trading profits & losses before accounting for transaction costs), 85.1% of

individuals made losses in FY24.

 In terms of Future versus Options Traders, it was observed that the percentage of

Individual traders making losses in Futures contracts is constantly lower than those

making losses in Options contracts throughout the study period. In FY24, only about

60% traders made (net) losses in Futures, compared to 91.5% in Options.

Chart 4: Proportion of Loss Makers in F&O segment – Individual Category

% of Individuals Making Losses % of Individuals Making Net Losses

(Gross vs Net) (Futures vs Options)

90.4% 91.6% 91.5%

91.5% 91.1%
90.2% 71.1%
67.5%
59.6%
86.7%
86.0%
85.1%

2021-22 2022-23 2023-24 2021-22 2022-23 2023-24

In terms of Gross Loss In terms of Net Loss Futures Options

 91.1% of Individual F&O traders (about 73 lakh traders) incurred losses in F&O in

FY24. These loss-makers incurred an average loss of ₹ 1.20 lakh per person (lower than

₹ 1.43 lakh per person in FY23).

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 Analysis of Profits & Losses in the Equity Derivatives Segment (FY22-FY24)

Chart 5: Average Per Person Net Loss of Loss-Makers in F&O

₹ 1.45 Lakh
₹ 1.43 Lakh
₹ 1.40 Lakh

₹ 1.35 Lakh

₹ 1.30 Lakh
₹ 1.30 Lakh

₹ 1.20 Lakh
₹ 1.25 Lakh

₹ 1.20 Lakh

₹ 1.15 Lakh

₹ 1.10 Lakh

₹ 1.05 Lakh

FY22 FY23 FY24

Note: The loss-makers are classified based on their gross profit or loss.

5.3. Amount of Losses by Individual Category Traders

 In FY24, Individual traders’ gross loss (i.e. trading loss before accounting for transaction

costs) widened to about ₹52,400 crore (compared to ₹48,800 in FY23) whereas net losses

amplified to about ₹ 74,800 crore (compared to ₹ 65,700 crore in FY23). On the other hand,

the average net loss narrowed from about ₹ 1,13,000 per person in FY23 to about ₹ 87,000

per person in FY24.

Chart 6: Trends in Profit and Loss in F&O segment (Gross vs Net P&L)

Amount of Losses in F&O Avg. per person Losses

(in ₹Crore) (in ₹‘000)

74,812 112.7
65,747 95.5
83.6 86.7
52,361
48,765 72.0
40,824 60.7
30,778

2021-22 2022-23 2023-24 2021-22 2022-23 2023-24

Gross_Loss Net_Loss Avg_Gross_Loss Avg_Net_Loss

 Individual’s losses in Options segment grew 30.8% year-on-year to ₹77,800 crore in FY24,

while they made gains of ₹3,000 crore in Futures (compared to losses of about ₹6,200 crore

in FY23).

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 Analysis of Profits & Losses in the Equity Derivatives Segment (FY22-FY24)

 In Futures, individuals made an average net profit of about ₹60,000 per person in FY24,

compared to loss of ₹1,28,000 per person in FY23. In Options, average per person net loss

narrowed to about ₹91,000 in FY24 from about ₹1,03,000 in FY23.

Chart 7: Trends in Profit and Loss in F&O segment (Futures vs Options)

Amount of Profits/Losses Avg. per person Profits/Losses

(in ₹Crore) (in ‘000 ₹)
2021-22 2022-23 2023-24 2021-22 2022-23 2023-24

59.8
3,021

-3,285 -6,223

-37,539
-72.2
-89.0 -90.9
-102.9
-59,524
-128.3
Per Person Net P&L in Futures
-77,833
Futures Options Per Person Net P&L in Options

5.4. Transaction Costs (TC)

 On an average, Individuals spent ~ ₹ 26,000 per person as a transaction cost in FY24.

 Nearly 71% of transaction cost was in the form of Brokerage (51% of TC) and Exchange

Fee (20% of TC).

 Individual traders incurred more than ₹50,000 crore in transaction costs for trading in

F&O during FY22 to FY24. Of which more than half (about ₹25,000 crore) was in the

form of brokerage, followed by ₹13,800 crore to the Government in the form of STT,

GST and Stamp duty and ₹10,200 crore in the form of Exchange fees.

 Compared to FY22, the TC incurred by F&O traders more than doubled from about

₹10,000 crore to more than ₹22,000 crore in FY24.

 While the number of transactions have gone up by 157% from 290 crore in FY22 to 745

crore in FY24, TC per transaction has gone down from about ₹35 to ₹30 during the

same period.

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 Analysis of Profits & Losses in the Equity Derivatives Segment (FY22-FY24)

Chart 8: Trends and Break up of Transactions Costs

Transaction Costs in F&O segment Transaction Cost Break Up (FY24)

(Amount in ₹Crore) (Amount in ₹Crore)

22,451
SEBI Fee Brokerage
16,982 ₹ 97 ₹ 11,364
0% 51%

10,047 StampDu
ty ₹ 22,451
₹ 199 Crore
Exchange
1%
Fee
GST
₹ 4,469
₹ 2,868
20%
13%
STT
2021-22 2022-23 2023-24 ₹ 3,454
15%

5.5. Aggregate Amount of Profit & Loss in F&O during FY22-FY24

 During FY22 to FY24, there were a total of 1.13 crore unique Individual traders, who

traded in F&O at least once during these three years. Collectively, they incurred a

combined gross loss of ₹1,31,903 crore and a combined net loss of ₹1,81,383 crore

during the period of FY22 to FY24.

Table 7: Summary of Net Profit and Loss of Individuals in F&O segment

Transaction
Gross Gross
Brokerage Cost (incl. Net Profit Traders
Year Turnover Profit
Brokerage)
(in ₹ Lakh Crore) (in ₹ Crore) (in ₹ Crore) (in ₹ Crore) (in ₹ Crore) (in Lakh)

FY22 115.0 -30,778 5,185 10,047 -40,824 42.7

FY23 148.6 -48,765 8,508 16,982 -65,747 58.4

FY24 172.2 -52,361 11,364 22,451 -74,812 86.3

Total 435.8 -1,31,903 25,056 49,480 -1,81,383 113.2

Notes: Based on a sample of top 15 brokers in the equity F&O segment.

 Out of these 113.2 lakh individual F&O traders, 103.4 lakh traders (or 91.3% traders)

traded only Options and 0.70 lakh traders (or 0.6% traders) traded only Futures. 9.1

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 Analysis of Profits & Losses in the Equity Derivatives Segment (FY22-FY24)

lakh individual traders (or 8.1% of traders) traded both Futures as well as Options.

Which means, 112.5 lakh traders (or 99.4% of traders) traded Options at least once

during these three years.

 In terms of profit and loss, out of these 113.2 lakh individual F&O traders, 105.1 lakh

individuals (or 92.8% of total traders) incurred net losses in F&O combined for all three

years. Alternatively, it means, only 7.2% of F&O traders made profit, when looked

over a period of three years.

 Individual category traders made an average per person loss of ₹1.60 lakh over the

period of three years. For the loss-makers, the average loss was about ₹2 lakh per

person, whereas for the profit-makers, the average per person profit was ₹3 lakh per

person.

Table 8: P&L of Profit-Makers vs Loss-Makers during FY22-FY24 combined

No of Gross Trans. Trans Cost Net Profit Avg. Net

Traders Profit Cost (as % of Gross Profit (Per
Category Profit) Person)
(in Lakh) (₹ Crore) (₹ Crore) (in %) (₹ Crore) (₹)
Profit-
8.1 33,114 8,094 24.4% 25,020 3,08,889
Makers
Loss-
105.1 -1,65,018 41,386 -25.1% -2,06,404 -1,96,388
Makers
Overall 113.2 -1,31,904 49,480 25.0%# -1,81,384 -1,60,233
Note: # - Computed as transaction cost / (absolute amount of gross profit and gross loss)

Distribution of Losses in F&O-

 Distribution of losses is highly skewed towards the loss-makers. While about 10,800

traders made losses of more than ₹1 crore in F&O segment combined for all three

years, only about 2,500 traders made profit of more than ₹1 crore.

 These top 10,800 traders in terms of highest losses, incurred an average loss of more

than ₹2 crore per person over the period of three years.

 About 4 lakh traders, who were top 3.5% of loss-makers, contributed to 55.3% of total

losses. These traders incurred an average loss of about ₹28 Lakh per person over the

period of three years.

 Only 1.1% of total traders made more than ₹1 Lakh in profit in F&O over the period of

three years.

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 Analysis of Profits & Losses in the Equity Derivatives Segment (FY22-FY24)

Chart 9: Distribution of Profit and Loss Makers in F&O during FY22 to FY24

No. of Traders in F&O Net Profit/Loss (₹'000 crore)

Profit(>10CR) 101 Profit(>10CR) 2.4

Profit(1CR_10CR) 2.4 K Profit(1CR_10CR) 5.6
Profit(10L_1CR) 26.5 K Profit(10L_1CR) 7.2
Profit(1L_10L) 96.5 K Profit(1L_10L) 3.2
Profit(10K_1L) 1.8 Lakh Profit(10K_1L) 0.7
Profit(Upto_10K) 4.6 Lakh Profit(Upto_10K) 0.1
Loss(Upto_10K) 38.7 Lakh Loss(Upto_10K) -1.2
Loss(10K_1L) 39.5 Lakh Loss(10K_1L) -15.3
Loss(1L_10L) 23.4 Lakh Loss(1L_10L) -73.1
Loss(10L_1CR) 3.9 Lakh Loss(10L_1CR) -88.2
Loss(1CR_10CR) 10.8 K Loss(1CR_10CR) -19.8
Loss(>10CR) 127 Loss(>10CR) -2.7

Distribution of Losses in Options-

 For this section, trader’s categories are classified based on the basis of their premium

turnover in the Options segment and they are defined as follows,

a) Small-Size: Turnover less than ₹1 lakh over three years’ period

b) Mid-Size: Turnover between ₹1 lakh - ₹1 Crore over three years’ period
c) High-Value: Turnover greater than ₹1 Crore over three years’ period

 This section focuses solely on the Options segment, which represents 99.4% of all F&O

traders. It was observed that about 30% of all option traders were “Small-Size” traders.

These “Small-Size” traders incurred ₹1,003 crore in net losses in Options over the

period of three years. While, their contribution to total turnover was 0.04%, the

contribution to total losses of Individual category was 0.6%.

 “Mid-Size” traders represented 53% of total option traders (60 lakh option traders).

These traders incurred a total loss of ₹32,251 crore. While their contribution to

turnover was 6.6%, contribution to total losses was 18.4%.

 “High-Value” traders represented 17% of total option traders (19.3 lakh option traders).

These traders incurred a total loss of ₹1,41,641 crore. While their contribution to

turnover was 93.4%, contribution to total losses was 81.0%.

 More than 80% losses of Individual traders in Options segment were incurred by 17%

“High-Value” Traders.
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 Analysis of Profits & Losses in the Equity Derivatives Segment (FY22-FY24)

 It was observed that higher trading activity was associated with a higher percentage

of loss-makers. The proportion of loss-makers was the highest (95% of total traders) in

“High-Value” traders’ category, compared to “Mid-size” traders (93.8% loss-makers)

and “Small-size” traders (91.5% loss-makers).

Table 9: Summary of Net Profit and Loss in Options segment during FY22-FY24

Category Combined No of No of Loss Loss

Premium Turnover Net P&L Traders Makers Makers
(FY22 to FY24) ( ₹Crore) (in Lakh) (in Lakh) (in %)
Small-Size
Traders Upto ₹ 1 Lakh -1,003 33.2 30.4 91.5%
Mid-Size
Traders ₹ 1L - ₹ 1CR -32,251 60.0 56.3 93.8%
High-Value
Traders > ₹ 1 CR -1,41,641 19.3 18.4 95.0%
Total - 1,74,895 112.5 105.1 93.3%

5.6. Product Preference

 99.3% of the F&O traders traded Options at least once during FY24. 94.2% of the F&O

traders traded only Options and 5.1% traders traded both Futures as well as Options.

0.7% of the F&O traders traded only Futures. The percentage share of F&O traders,

who traded Futures at least once during a year, has come down to 5.9% in FY24 from

10.6% in FY22.

Chart 10: Product Preference of F&O Traders

Number of Traders trading Futures and % of F&O Traders Trading Futures
Options (in Lakh)

85.7 10.6%

8.3%
57.8
42.2 5.9%

4.6 4.9 5.1

2021-22 2022-23 2023-24

2021-22 2022-23 2023-24
Futures Options

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 Analysis of Profits & Losses in the Equity Derivatives Segment (FY22-FY24)

5.7. Average Trade Size – Options Segment

In recent past, the number of option traders has gone up significantly from 42.2 lakh in FY22

to 85.7 lakh in FY24. In line with this trend, the average number of transactions in Options

segment increased by 27% over FY22 to 870 transactions per person in FY24. Similarly, the

average per person turnover (traded value) also increased by 15% over FY22 to ₹ 1 crore per

person in FY24. However, during the same period, the average trade size has declined by 9%

from ₹ 13,055 to ₹ 11,824 in FY24.

Table 10: Per Person Summary Trade Statistics in Options Segment

Average No of Average Net Average

Average
Traders Transactions Losses per Turnover per
Trade Size
Year per Person Person Person
(in Lakh) (Number) (₹) (in ₹ Lakh) (₹)
2021-22 42.2 687 -88,976 90 13,055
2022-23 57.8 924 -1,02,929 120 13,036
2023-24 85.7 870 -90,863 103 11,824

5.8. Size Wise Trends – Options Segment

Small-Size Traders

 In FY24, about 36% of all the option traders (about 30.5 lakh traders) were ‘Small-traders’

(traded less than ₹ 1 lakh in Options premium turnover).

 These ‘Small-traders’ contributed 0.1% to total Options’ premium turnover and 1% to total

losses of Individual category investors.

 90.2% of these ‘Small-traders’ incurred losses. The average per person loss of these ‘Small-

traders’ was ₹ 2,600 per person. Total losses of these ‘Small-traders’ in Options segment

were about ₹ 788 crore in FY24.

High Value Traders

 About 1.6 lakh traders (1.9% of F&O traders) traded for more than ₹ 10 crore in options

premium turnover in FY24. They contributed 58.9% to Option premium turnover and

35.4% to losses of the Individual category investors. 93.1% of these traders incurred losses

and the average loss was ₹17.2 lakh per person.

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 Analysis of Profits & Losses in the Equity Derivatives Segment (FY22-FY24)

 About 10.6 lakh traders (12.5% of F&O traders) traded for more than ₹1 crore in options

premium turnover in FY24. They contributed 90.2% to Options premium turnover and

74.3% to losses of the Individual category investors. 93.5% of these traders incurred losses

and the average loss was ₹5.4 lakh per person. Details in Chart below and Annexure

table 6.1(A) and 6.1(B).

Chart 11: Trading Activity-wise Trends (based on Premium Turnover Categories)

% of Investors Trading Contribution to Contribution to % Loss-Makers

Options Premium Turnover Losses ##
#
>10CR 1.9% 58.9% 35.4% 93.1%

1CR-10CR 10.6% 31.3% 38.9% 93.6%

10L-1CR 24.9% 8.7% 19.8% 92.9%

1L-10L 27.0% 1.1% 4.9% 91.0%

10K-1L 18.3% 0.1% 0.9% 87.6%

Less than 10K 17.3% 0.0% 0.2% 93.0%

Note: 1. Trading activity categories are based on the premium turnover; 2. # - refers to contribution to
Premium Turnover of Individual Category; 3. ## - refers to contribution to Net Losses of Individual Category

5.9. Age Wise Trends

 The proportion of young traders (having age less than 30 years) has increased

significantly from 31% in FY23 to 43% in FY24.

 It was observed that the age group of the traders was inversely proportional to the

possibility of loss. As traders age increased, the percentage of loss-makers in F&O

declined, indicating relative risk aversion, better risk management or the experience

coming into play for elderly traders compared to young traders. The percentage of

loss-makers for young traders (age less than 30 years) was higher (93% in FY24) as

compared to other age groups. On the other hand, the percentage of loss-makers in

elderly traders (age greater than 60 years) was relatively lower at 79% in FY24.

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 Analysis of Profits & Losses in the Equity Derivatives Segment (FY22-FY24)

Chart 12: Age wise Trends

Participation by Age Proportion of Loss Makers

Less than 30 30-40 40-50 50-60 >60

93%

93%
93%
2%

92%
91%

91%
4%

91%

89%
88%

87%
3%

85%
84%
6% 5% 4%

83%
80%
14%

79%
18% 16%

35%
42% 40%

43%
31% 35%

<30

>60

<30

>60

<30

>60
30-40
40-50
50-60

30-40
40-50
50-60

30-40
40-50
50-60
FY22 FY23 FY24 FY22 FY23 FY24

5.10. Income Wise Trends

 For this section, F&O traders were classified in the following income brackets,

a) Low Income: declared annual income less than ₹5 lakh

b) Mid Income: declared annual income between ₹5 lakh to ₹25 lakh

c) High Income: declared annual income less than ₹25 Lakh to ₹ 1 Crore

d) Very High Income: declared annual income greater than ₹1 Crore

 Nearly 76% of the Individual F&O traders (i.e. 65.4 lakh F&O traders) had declared

annual income of less than ₹5 lakh and ~ 94% of the Individual F&O traders (i.e. 80.5

lakh F&O traders) had declared annual income of less than ₹10 lakh in FY24.

 The proportion of “Low Income” traders has increased significantly from 71% in FY22

to 76% in FY24.

 “Mid Income” traders’ category is the second biggest category with 19.2 lakh traders

(i.e. 18% of F&O traders). So, Small and Mid-Income category combined represented

almost 98% of Individual F&O traders.

 The percentage of loss-makers for “Low Income” traders’ category was the highest

(92.2% in FY24) as compared to the average proportion of loss-makers (91.1% in FY24)

and also compared to other income groups.

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 Analysis of Profits & Losses in the Equity Derivatives Segment (FY22-FY24)

 With an exception of “Very High Income” Individual F&O traders, the percentage of

loss-makers in F&O were inversely proportional to their income category. As traders’

annual income increased, the percentage of loss-makers in that category had declined.

 The percentage of loss-makers from “High Income” traders’ category was the lowest

(about 75% loss-makers) amongst all income categories.

Chart 13: Income wise Trends

Participation by Annual Income Proportion of Loss Makers

<5 Lakh 5-10L 10-25L

93%

92%
92%

91%
25-50L 50-100L >100L

90%
89%

87%

85%
85%
84%

84%
82%

78%
78%
7% 6% 5%

75%

75%
75%
74%
20% 18%
20%

71% 72% 76%

50-100L

50-100L

50-100L
>100L

>100L

>100L
10-25L
25-50L

10-25L
25-50L

10-25L
25-50L
5-10L

5-10L

5-10L
<5 Lakh

<5 Lakh

<5 Lakh
FY22 FY23 FY24 FY22 FY23 FY24

 “Very High Income” F&O traders actually made consolidated net profit of ₹259 crore in

FY24, compared to all other categories which made consolidated net losses in FY24.

Although, about 85% of total traders from this category too incurred losses.

 In terms of average per person P&L, “High Income” traders made average losses of ₹2.6

lakh per person, followed by “Mid Income” traders (average loss of ₹1.5 lakh per

person), “Low Income” traders (average loss of ₹65 thousand per person). “Very High

Income” traders earned an average profit of ₹96 thousand per person.

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 Analysis of Profits & Losses in the Equity Derivatives Segment (FY22-FY24)

Table 11: Income wise Trends in F&O during FY24

No of Average
No of Loss
Annual Net P&L Loss P&L
Category Traders Makers
Income Makers
(₹ Crore) (in Lakh) (in Lakh) (in %) (₹ ‘000)
Low Income Less than ₹5
-42,790 65.4 60.2 92.2% -65.5
Lakh
Mid Income ₹5 Lakh -
-29,293 19.2 17.0 88.3% -152.5
₹25 Lakh
High Income ₹25 Lakh to
-2,786 1.1 0.8 75.0% -258.0
₹1 Crore
Very High
> ₹1 Crore 259 0.3 0.2 85.2% 95.9
Income
Not Not
-201 0.3 0.3 87.9% -60.9
Available Available

Total -74,811 86.3 78.5 91.1% -86.7

5.11. Gender Wise Trends

 The proportion of ‘Female’ traders participating in F&O has decreased from 14.9% in FY22

to 13.7% in FY24.

 Compared to ‘Male’ traders, the proportion of ‘Female’ loss-making traders in F&O was

lower across the years. While 91.9% ‘Male’ traders made losses in F&O in FY24, 86.3%

percentage of ‘Female’ traders made losses in F&O.

 In terms of average profit and loss, the average net losses by ‘Female’ traders were

relatively lesser as compared to ‘Male’ traders. In FY24, the Female traders made an

average per person loss of ₹75,973, while ‘Male’ traders incurred an average loss of

₹88,804.

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 Analysis of Profits & Losses in the Equity Derivatives Segment (FY22-FY24)

Chart 14: Gender wise Trends

Participation of Female Traders Proportion of Loss Makers

14.9%
91.2% 92.4% 91.9%
14.6%
87.6% 86.3%
85.3%

13.7%

Female

Female

Female

Male
Male

Male
FY22 FY23 FY24
FY22 FY23 FY24

5.12. Profit-Makers vs. Loss-Makers

 Throughout the last three years, the Loss-Makers made more losses than the profits made

by Profit-Makers in absolute terms. In FY24, the Loss-Makers made losses of ₹1.20 lakh

per person, whereas Profit-Makers made profits of ₹1.03 lakh per person.

 Profit-Makers incurred ~22% transaction costs as percentage of gross profits (i.e. trading

profits before accounting for transaction costs) in FY24. Loss-Makers incurred ~27%

transaction costs, in addition to their gross loss (i.e. trading loss before accounting for

transaction costs) in FY24.

Table 12: Profit and Loss of Profit-Makers vs Loss-Makers

No of Gross Trans. Trans Cost Net Profit Avg. Net

Traders Profit Cost (as % of Gross Profit (Per
Year Category Profit) Person)
(in Lakh) (₹ Crore) (₹ Crore) (in %) (₹ Crore) (₹)
Profit- 5.8 7,905 1,822 23.0% 6,083 1,04,519
FY22 Makers
Loss- 36.1 -38,683 8,225 -21.3% -46,908 -1,29,975
Makers
Profit- 7.6 8,497 2,618 30.8% 5,879 77,152
FY23 Makers
Loss- 50.0 -57,262 14,364 -25.1% -71,626 -1,43,223
Makers
Profit- 12.7 16,712 3,654 21.9% 13,058 1,02,900
FY24 Makers
Loss- 72.9 -69,073 18,797 -27.2% -87,870 -1,20,469
Makers

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 Analysis of Profits & Losses in the Equity Derivatives Segment (FY22-FY24)

5.13. New Traders vs. Regular Traders

 For this section, traders’ categories are defined as follows,

a) New Traders: Traders who traded for the first time in three years in FY24 in the

equity F&O segment.

b) Regular Traders: Traders who traded for all three consecutive years i.e. FY22-FY24

in the equity F&O segment.

c) Others: All other traders.

 Almost half (42 lakh traders) of all the F&O traders were “New Traders” in FY24. 92.1% of

these “New Traders” experienced net losses and on an average incurred a net loss of ~

₹46,000 per person in FY24.

 Almost 25% of all the traders were “Regular Traders”. 88.7% of these “Regular Traders”

experienced losses and on an average incurred a net loss of ~ ₹1,50,000 per person in FY24.

Table 13: Profit and Loss of New Traders vs Regular Traders

Contri.
No of Avg % of Contri.
Net % Loss- to
Category of Trader Traders P&L Per Total to
P&L Makers Turnov
Person Traders Losses
er
(Lakh) (₹ Crore) (₹) (%) (%) (%) (%)
New Traders
(First time traded 41.9 -19,337 -46,139 92.1% 48.6% 14.3% 25.8%
in FY24)
Regular Traders
(traded in FY22, 22.4 -33,767 -1,50,477 88.7% 26.0% 63.2% 45.1%
FY23 and FY24)
Others 21.9 -21,708 -99,078 91.4% 25.4% 22.5% 29.0%
Total 86.3 -74,812 -86,728 91.1% 100.0% 100.0% 100.0%

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 Analysis of Profits & Losses in the Equity Derivatives Segment (FY22-FY24)

5.14. Geographic Spread

 A rising number of F&O traders in recent years has primarily been driven by increased

participation of traders from beyond Top308 cities (B30 cities). In FY24, nearly three

quarters of the total F&O traders (72.2% of total traders) belonged to the B30 cities,

compared to 61.7% mutual funds investors, who belonged to the B30 cities.

 In FY24, the F&O traders from B30 cities contributed 51.3% to total turnover of the

Individual category, and represented 68.1% total losses of the category. For the reference,

it may be noted that, as of August 2024, about 27% of Individual investors’ Mutual Fund

assets were from B30 Locations9. This shows, that investors from B30 cities are relatively

more active in the F&O segment than Mutual Funds, compared to T30 cities investors.

 It was also observed that the ratio of F&O trader to Mutual Fund investor is higher for B30

cities (28.6% in FY24), compared to T30 cities (17.8% in FY24). Meaning, for every 100

Mutual Fund investors from B30 cities, there were 28.6 F&O traders from B30 cities and

17.8 F&O traders from T30 cities for every 100 MF investors from T30 cities.

Chart 15: Trends in Derivatives Traders from B30 Cities

B30 Cities Derivatives Traders vs. Derivatives Traders for every 100 Mutual
B30 Cities Mutual Funds Investors Funds Investors
70.3% 72.2%
68.1% 28.6
58.9% 61.7% 24.5
57.5%
20.0 24.5
20.6
16.9
17.8
15.0
12.8

2021-22 2022-23 2023-24 2021-22 2022-23 2023-24

% of MF Investors from B30
% of Derivative Traders from B30 Beyond 30 Top 30 Overall

Note: At the end of March 2024, there were about 3.5 crore unique individual Mutual Fund investors in India.

8
Top30 refers to the top 30 geographical locations in India and B30 refers to the locations beyond the top 30.
The Top 30 cities considered for this study are as specified by AMFI.
9
Report by AMFI on B30 Assets; https://www.amfiindia.com/Themes/Theme1/downloads/home/B30vsT30.pdf
Page 28 of 33
 Analysis of Profits & Losses in the Equity Derivatives Segment (FY22-FY24)

 During FY24, almost one fourth (23.5%) of all the F&O traders belonged to the Tier I Cities.

Traders from Tier I cities had higher contribution to Turnover (36.8%) but lower

contribution to losses (26.2%). Traders from beyond Tier I, II and III cities10, contributed

lower to turnover but had higher contribution to losses. In FY24, the average per person

loss was ~₹ 96,800 for Tier I cities Traders, followed by Tier II (~ ₹ 90,400), Tier III (~ ₹

90,100) and Others (~ ₹ 82,000).

Chart 16: Trends in Derivatives Traders from Tier I, II and III cities

61.3%

58.0%
47.5%
36.8%

26.2%
23.5%

11.4%

10.5%
10.1%

5.3%
5.1%

4.3%

Tier1 Tier2 Tier3 Others

Traders Contribution to Turnover Contibution to Loss

 More than 50% of all the F&O traders, who traded in FY24, were from top four states

namely Maharashtra, Gujarat, Uttar Pradesh and Rajasthan. 21.7% of F&O traders (or 18.8

lakh F&O traders) were from Maharashtra followed by Gujarat (10.1 lakh or 11.6%), UP

(9.3 lakh, or 10.7%) and Rajasthan (5.4 lakh or 6.2%). Details in Annexure 6.2.

 Amongst 15 major states, the highest 2-year percentage growth in the number of F&O

traders was seen in UP (186% growth in FY24 over FY22), followed by Bihar (179%), West

Bengal (177%) and Punjab (162%). Details in Annexure 6.2.

 In terms of state-wise pattern of average per person loss, it was observed that all the top

four states with highest average per person loss were from southern region of India,

namely Telangana (1.97 lakh per person loss), followed by Andhra Pradesh (1.45 lakh per

person), Tamil Nadu (1.37 lakh per person) and Karnataka (1.35 lakh per person).

10
Tier I (The following 7 cities considered - Banglore, Delhi, Chennai, Hyderabad, Mumbai, Pune, Kolkata).
Tier II (The following 20 cities considered - Amritsar, Bhopal, Bhubaneswar, Chandigarh, Faridabad, Ghaziabad,
Jamshedpur, Jaipur, Kochi, Lucknow, Nagpur, Patna, Raipur, Surat, Visakhapatnam, Agra, Ajmer, Kanpur,
Mysuru, Srinagar),
Tier III (The following 19 cities considered - Etawah, Roorkee, Rajamundry, Bhatinda, Hajipur, Rohtak, Hosur,
Gandhinagar, Junagadh, Udaipur, Salem, Jhansi, Madurai, Meerut, Mathura, Bikaner, Cuttack, Vijayawada,
Nashik).
Page 29 of 33
 Analysis of Profits & Losses in the Equity Derivatives Segment (FY22-FY24)

Chart 17: State Wise F&O Traders and their Per Person Loss in F&O in FY24

20.0 250

Avg Per Person Loss in Thousands

18.0
197
16.0 200
F&O Traders in Lakh

14.0
137 145
135
12.0
124 118
150

110 104
10.0
99
88 83 86 80
8.0
74 73 76 73 78 76 100

6.0
60
4.0 50
18.8

10.1

4.3

3.6
9.3

5.4

4.0

3.9

3.4

3.1

3.0

2.3

2.1

2.1

1.6

1.4

1.4

1.2

1.1

1.1
2.0

0.0 -

F&O Traders (LHS) Average Per Person Loss in Rs `000 (RHS)

5.15. Trading Behavior and Persistence

 As many as 76.3% of the loss-making traders persisted with the trading in F&O, in spite

of making losses in preceding two consecutive years. Out of 24.4 lakh investors who made

losses in both FY22 and FY23, 18.6 lakh traders continued to trade in third year, while 5.8

lakh traders stopped trading in the third year. However, only 8.3% of traders, who

persisted to trade in F&O in third year in spite of losses in two preceding years, succeeded

to make profit in third year.

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 Analysis of Profits & Losses in the Equity Derivatives Segment (FY22-FY24)

6. ANNEXURES

6.1. Trends based on Trading Activity in Options in FY24

Table 6.1 (A) – Distribution of Traders

Categories based Per Person

No of Traders Net Losses
on Premium Average P&L
Turnover (in Lakh) (in ₹) (in ₹ crore)
Less than 10K 14.8 -819 -121
10K-1L 15.7 -4,251 -667
1L-10L 23.2 -16,340 -3,786
10L-1CR 21.4 -72,094 -15,392
1CR-10CR 9.1 -3,34,201 -30,312
>10CR 1.6 -17,22,188 -27,555

Table 6.1 (B) – Percentage Contribution to Turnover and Losses

Categories
% share in % share in % of
based on % of total Contribution
Premium Notional Loss-
Premium Investors in Losses
Turnover Turnover Makers
Turnover
Less than 10K 17.3% 0.0% 0.0% 0.2% 93.0%
10K-1L 18.3% 0.1% 0.2% 0.9% 87.6%
1L-10L 27.0% 1.1% 1.7% 4.9% 91.0%
10L-1CR 24.9% 8.7% 10.2% 19.8% 92.9%
1CR-10CR 10.6% 31.3% 33.3% 38.9% 93.6%
>10CR 1.9% 58.9% 54.6% 35.4% 93.1%

Page 31 of 33
 Analysis of Profits & Losses in the Equity Derivatives Segment (FY22-FY24)

6.2. State-wise distribution of F&O Traders

State Name 2021-22 2022-23 2023-24 Percent Change

(FY24 over FY22)
Maharashtra 11.68 14.56 18.78 61%
Gujarat 4.88 6.83 10.09 107%
Uttar Pradesh 3.25 5.25 9.28 186%
Rajasthan 2.17 3.21 5.37 147%
Madhya Pradesh 1.81 2.63 4.28 136%
Karnataka 2.5 3.05 4.02 61%
West Bengal 1.42 2.26 3.94 177%
Bihar 1.28 2.02 3.57 179%
Delhi 1.59 2.16 3.41 114%
Haryana 1.38 1.99 3.1 125%
Tamil Nadu 1.96 2.52 3.04 55%
Punjab 0.87 1.36 2.28 162%
Andhra Pradesh 1.61 1.82 2.11 31%
Telangana 1.54 1.72 2.07 34%
Odisha 0.78 1.08 1.62 108%
Jharkhand 0.58 0.86 1.43 147%
Kerala 0.76 1.07 1.35 78%
Chattisgarh 0.48 0.7 1.19 148%
Assam 0.32 0.56 1.14 256%
Uttarakhand 0.39 0.61 1.05 169%
Himachal Pradesh 0.22 0.34 0.6 173%
Jammu and Kashmir 0.17 0.26 0.43 153%
Chandigarh 0.08 0.12 0.17 113%
Goa 0.08 0.11 0.16 100%
Tripura 0.04 0.06 0.11 175%
Dadra and Nagar Hav. 0.02 0.04 0.09 350%
Manipur 0.08 0.07 0.07 -13%
Andaman and Nico.In. 0.02 0.04 0.06 200%
Pondicherry 0.03 0.03 0.04 33%
Daman and Diu 0.01 0.02 0.03 200%
Megalaya 0.01 0.02 0.03 200%
Nagaland 0.01 0.01 0.02 100%
Arunachal Pradesh 0.01 0.02 0.02 100%
Sikkim 0.01 0.01 0.02 100%
Mizoram 0 0.01 0.01 NA
Lakshadweep 0 0 0 NA
Others # 0.7 0.93 1.28 89%
Total 42.74 58.35 86.26 102%
Note: 1. Gray color represent categories are not color coded as the base is very small. 2. # means data
not available.

*******
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