Most F&O traders lose money; should retail investors be flocking there?
Last Update Date: 05-10-2026
Published by The Federal
Abhishek Kumar's role: Interviewed
Abhishek Kumar explained why F&O losses grow: borrowed exposure, time decay, trading on expiry days, costs and trading habits. He also covered using derivatives to hedge, who should stay cautious, and basic rules for managing risk.
More of Abhishek's views on money management
This video interview on The Federal looks at why most retail traders in futures and options lose money. It cites a SEBI study finding that about 88% of individual equity derivatives traders lost money in FY26, with combined net losses of ₹91,685 crore after costs, and covers what retail investors should understand before trading.
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Most F&O traders lose money; should retail investors be flocking there?