{"id":6841,"date":"2024-11-11T06:58:54","date_gmt":"2024-11-11T06:58:54","guid":{"rendered":"https:\/\/navia.co.in\/blog\/?p=6841"},"modified":"2026-08-13T06:08:24","modified_gmt":"2026-08-13T06:08:24","slug":"who-made-the-money-in-options-trading","status":"publish","type":"post","link":"https:\/\/navia.co.in\/blog\/who-made-the-money-in-options-trading\/","title":{"rendered":"Who Made the Money in Options Trading?\u00a0"},"content":{"rendered":"<ul><li><a class=\"aioseo-toc-item\" href=\"#who-made-the-money-and-how-much\">Who Made the Money and How Much?<\/a><\/li><li><a class=\"aioseo-toc-item\" href=\"#so-who-took-the-hit\">So, Who Took the Hit?<\/a><\/li><li><a class=\"aioseo-toc-item\" href=\"#how-have-retail-traders-fared-in-f-o\">How Have Retail Traders Fared in FandO?<\/a><\/li><li><a class=\"aioseo-toc-item\" href=\"#costs-are-a-real-killer\">Costs Are a Real Killer<\/a><\/li><li><a class=\"aioseo-toc-item\" href=\"#how-navia-can-save-option-traders-on-brokerage-costs\">How Navia Can Save Option Traders on Brokerage Costs<\/a><\/li><li><a class=\"aioseo-toc-item\" href=\"#for-example\">For example:<\/a><\/li><li><a class=\"aioseo-toc-item\" href=\"#age-matters-young-traders-losing-more\">Age Matters: Young Traders Losing More<\/a><\/li><li><a class=\"aioseo-toc-item\" href=\"#location-isnt-everything-traders-everywhere-lost\">Location Isn\u2019t Everything: Traders Everywhere Lost<\/a><\/li><li><a class=\"aioseo-toc-item\" href=\"#location-wise-losses-of-f-o-traders-fy-24\">Location-wise Losses of FandO Traders (FY24)<\/a><\/li><li><a class=\"aioseo-toc-item\" href=\"#new-traders-a-painful-start\">New Traders: A Painful Start<\/a><\/li><li><a class=\"aioseo-toc-item\" href=\"#conclusion-the-pros-are-cashing-in-while-retail-is-taking-the-hit\">Conclusion: The Pros Are Cashing In, While Retail Is Taking the Hit<\/a><\/li><li><a class=\"aioseo-toc-item\" href=\"#frequently-asked-questions\">Frequently Asked Questions<\/a><\/li><\/ul>\n\n\n<p class=\"wp-block-paragraph\" style=\"line-height:1.8;text-align:justify\">The <a href=\"https:\/\/www.sebi.gov.in\/reports-and-statistics\/research\/sep-2024\/study-analysis-of-profits-and-losses-in-the-equity-derivatives-segment-fy22-fy24-_86905.html\" target=\"_blank\" rel=\"noreferrer noopener\">SEBI report<\/a> on the equity derivatives segment (FY22-FY24) revealed that <strong>Proprietary Traders<\/strong> and <strong>Foreign Portfolio Investors (FPIs)<\/strong> walked away with the profits, mostly thanks to algorithmic trading, while <strong>Individual Traders<\/strong> and <strong>Others<\/strong> (like Corporates and <a href=\"https:\/\/navia.co.in\/demat-account-for-nri\">NRIs<\/a>) bore the brunt of losses. In short, the experts cashed in, and retail traders, particularly the younger ones, learned the hard way.&nbsp;<\/p>\n\n\n\n<blockquote style=\"border-left:4px solid #e8622f;background:#fdf1ec;padding:18px 22px;margin:1.5em 0;line-height:1.8\"><strong>&#128161; Quick Answer<\/strong><br>SEBI\u2019s study of the equity derivatives segment for FY22 to FY24 found that proprietary traders and foreign portfolio investors took the profits, largely through algorithmic trading, while individual traders and other entities absorbed the losses. Around 92% of individual traders lost money, and transaction costs widened the gap.<\/blockquote>\n\n\n\n<h2 class=\"wp-block-heading has-text-color has-link-color wp-elements-1\" id=\"who-made-the-money-and-how-much\" style=\"color:#023368\"><strong>Who Made the Money and How Much?<\/strong>&nbsp;<\/h2>\n\n\n\n<figure class=\"wp-block-table\"><table><thead><tr><th><mark style=\"background-color:rgba(0, 0, 0, 0);color:#ec4d37\" class=\"has-inline-color\"><strong>Trader Category&nbsp;<\/strong><\/mark><\/th><th><strong><mark style=\"background-color:rgba(0, 0, 0, 0);color:#ec4d37\" class=\"has-inline-color\">Profit \/ Loss (\u20b9 crore)&nbsp;<\/mark><\/strong><\/th><\/tr><\/thead><tbody><tr><td>Proprietary Traders&nbsp;<\/td><td>\u20b932,000 crore&nbsp;<\/td><\/tr><tr><td>Foreign Portfolio Investors (FPIs)&nbsp;<\/td><td>\u20b926,900 crore&nbsp;<\/td><\/tr><tr><td>Domestic Institutional Investors (DIIs)&nbsp;<\/td><td>\u20b9200 crore&nbsp;<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<ol style=\"margin:1em 0;line-height:1.9\">\n<li style=\"margin-bottom:0.8em;line-height:1.8\"><strong>Proprietary Traders<\/strong> earned <strong>96%<\/strong> of their profits using <strong>algorithmic trading<\/strong>, while <strong>FPIs<\/strong> bagged <strong>97%<\/strong> of their gains using similar strategies.&nbsp;<\/li>\n<li style=\"margin-bottom:0.8em;line-height:1.8\"><strong>DIIs<\/strong>? Well, they made just a modest \u20b9200 crore, probably by playing it safe with minimal Algo involvement.&nbsp;<\/li>\n<\/ol>\n\n\n\n<h2 class=\"wp-block-heading has-text-color has-link-color wp-elements-2\" id=\"so-who-took-the-hit\" style=\"color:#023368\"><strong>So, Who Took the Hit?<\/strong>&nbsp;<\/h2>\n\n\n\n<figure class=\"wp-block-table\"><table><thead><tr><th><mark style=\"background-color:rgba(0, 0, 0, 0);color:#ec4d37\" class=\"has-inline-color\"><strong>Trader Category&nbsp;<\/strong><\/mark><\/th><th><strong><mark style=\"background-color:rgba(0, 0, 0, 0);color:#ec4d37\" class=\"has-inline-color\">Profit \/ Loss (\u20b9 crore)&nbsp;<\/mark><\/strong><\/th><th><strong><mark style=\"background-color:rgba(0, 0, 0, 0);color:#ec4d37\" class=\"has-inline-color\">Percentage Using Algo&nbsp;<\/mark><\/strong><\/th><\/tr><\/thead><tbody><tr><td>Individuals&nbsp;<\/td><td>-\u20b913,900 crore&nbsp;<\/td><td>13%&nbsp;<\/td><\/tr><tr><td>Others (Corporates, NRIs, Trusts)&nbsp;<\/td><td>-\u20b924,500 crore&nbsp;<\/td><td>High losses using Algo&nbsp;<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\" style=\"line-height:1.8;text-align:justify\"><strong>Individual traders<\/strong> and <strong>other entities<\/strong> took substantial losses, with individuals engaging minimally in algorithmic trading.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-text-color has-link-color wp-elements-3\" id=\"how-have-retail-traders-fared-in-f-o\" style=\"color:#023368\"><strong>How Have Retail Traders Fared in F&amp;O?<\/strong>&nbsp;<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\" style=\"line-height:1.8;text-align:justify\">About <strong>92% of individual traders<\/strong> lost money. In FY24 alone, <strong>91.1% of individual traders<\/strong> lost an average of \u20b91.2 lakh each.&nbsp;<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><thead><tr><th><mark style=\"background-color:rgba(0, 0, 0, 0);color:#ec4d37\" class=\"has-inline-color\"><strong>Year<\/strong>&nbsp;<\/mark><\/th><th><strong><mark style=\"background-color:rgba(0, 0, 0, 0);color:#ec4d37\" class=\"has-inline-color\">Number of Loss-Making Traders (in lakh)<\/mark><\/strong>&nbsp;<\/th><th><strong><mark style=\"background-color:rgba(0, 0, 0, 0);color:#ec4d37\" class=\"has-inline-color\">Average Loss per Person (\u20b9)<\/mark>&nbsp;<\/strong><\/th><\/tr><\/thead><tbody><tr><td>FY22&nbsp;<\/td><td>36.1&nbsp;<\/td><td>\u20b91.30 lakh&nbsp;<\/td><\/tr><tr><td>FY23&nbsp;<\/td><td>50.0&nbsp;<\/td><td>\u20b91.43 lakh&nbsp;<\/td><\/tr><tr><td>FY24&nbsp;<\/td><td>72.9&nbsp;<\/td><td>\u20b91.20 lakh&nbsp;<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\" style=\"line-height:1.8;text-align:justify\">Despite all the risks, <strong>only 7.2% of traders made profits<\/strong>, and even fewer \u2013 just <strong>1%<\/strong> \u2013 managed to earn more than \u20b91 lakh in net profits.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-text-color has-link-color wp-elements-4\" id=\"costs-are-a-real-killer\" style=\"color:#023368\"><strong>Costs Are a Real Killer<\/strong>&nbsp;<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\" style=\"line-height:1.8;text-align:justify\">While losses mount, <a href=\"https:\/\/navia.co.in\/blog\/zero-brokerage-on-fo-charges-you-still-pay\/?utm_source=blog&amp;utm_medium=internal_link&amp;utm_campaign=options_basics\">transaction costs<\/a> are another sneaky drain on traders&#8217; funds. Between FY22-FY24, retail traders forked out over <strong>\u20b950,000 crore<\/strong> in transaction costs.&nbsp;<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><thead><tr><th><mark style=\"background-color:rgba(0, 0, 0, 0);color:#ec4d37\" class=\"has-inline-color\"><strong>Type of Cost&nbsp;<\/strong><\/mark><\/th><th><mark style=\"background-color:rgba(0, 0, 0, 0);color:#ec4d37\" class=\"has-inline-color\"><strong>Total Amount (\u20b9 crore)&nbsp;<\/strong><\/mark><\/th><th><mark style=\"background-color:rgba(0, 0, 0, 0);color:#ec4d37\" class=\"has-inline-color\"><strong>Percentage Share&nbsp;<\/strong><\/mark><\/th><\/tr><\/thead><tbody><tr><td>Brokerage&nbsp;<\/td><td>\u20b925,000 crore&nbsp;<\/td><td>50%&nbsp;<\/td><\/tr><tr><td>Taxes (STT, GST, Stamp Duty)&nbsp;<\/td><td>\u20b913,800 crore&nbsp;<\/td><td>28%&nbsp;<\/td><\/tr><tr><td>Exchange Fees&nbsp;<\/td><td>\u20b910,200 crore&nbsp;<\/td><td>20%&nbsp;<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h2 class=\"wp-block-heading has-text-color has-link-color wp-elements-5\" id=\"how-navia-can-save-option-traders-on-brokerage-costs\" style=\"color:#023368\"><strong>How Navia Can Save Option Traders on Brokerage Costs<\/strong>&nbsp;<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\" style=\"line-height:1.8;text-align:justify\"><a href=\"https:\/\/navia.co.in\">Navia\u2019s<\/a> <strong>Zero Brokerage<\/strong> plan offers a significant advantage for <a href=\"https:\/\/navia.co.in\/open-options-trading-account\">options traders<\/a> by eliminating brokerage costs, which typically make up a large portion of transaction expenses. With Navia\u2019s zero brokerage policy, option traders can save a substantial amount on these fees. As we saw above, <strong>brokerage alone accounts for 50% of total transaction costs<\/strong>, which can add up quickly, especially for frequent traders. By using <a href=\"https:\/\/navia.co.in\/app.html\">Navia Web and Mobile APP<\/a>, traders can avoid these charges and focus more on <a href=\"https:\/\/navia.co.in\/blog\/options-stop-loss-strategy-your-investments\/?utm_source=blog&amp;utm_medium=internal_link&amp;utm_campaign=options_basics\" data-type=\"post\" data-id=\"6349\">effective strategies <\/a>rather than worrying about high fees eating into their profits.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-text-color has-link-color wp-elements-6\" id=\"for-example\" style=\"color:#023368\"><strong>For example:<\/strong>&nbsp;<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\" style=\"line-height:1.8;text-align:justify\">If a trader is spending \u20b926,000 annually in brokerage fees, switching to <a href=\"https:\/\/navia.co.in\/blog\/unlock-future-trading-with-navia-zero-brokerage\/?utm_source=blog&amp;utm_medium=internal_link&amp;utm_campaign=options_basics\" data-type=\"post\" data-id=\"4374\">Navia\u2019s zero brokerage plans <\/a>could save that entire amount, potentially improving overall profitability for traders who are already working with tight margins.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-text-color has-link-color wp-elements-7\" id=\"age-matters-young-traders-losing-more\" style=\"color:#023368\"><strong>Age Matters: Young Traders Losing More<\/strong>&nbsp;<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\" style=\"line-height:1.8;text-align:justify\">The younger generation, particularly traders under 30, made up <strong>43% of F&amp;O traders<\/strong> in FY24 but saw <strong>93% of them losing money<\/strong>.&nbsp;<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><thead><tr><th><mark style=\"background-color:rgba(0, 0, 0, 0);color:#ec4d37\" class=\"has-inline-color\"><strong>Age Group<\/strong>&nbsp;<\/mark><\/th><th><strong><mark style=\"background-color:rgba(0, 0, 0, 0);color:#ec4d37\" class=\"has-inline-color\">Percentage of Loss-Makers&nbsp;<\/mark><\/strong><\/th><\/tr><\/thead><tbody><tr><td>Below 30&nbsp;<\/td><td>93%&nbsp;<\/td><\/tr><tr><td>30-40&nbsp;<\/td><td>91%&nbsp;<\/td><\/tr><tr><td>40-50&nbsp;<\/td><td>87%&nbsp;<\/td><\/tr><tr><td>Above 50&nbsp;<\/td><td>80%&nbsp;<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h2 class=\"wp-block-heading has-text-color has-link-color wp-elements-8\" id=\"location-isnt-everything-traders-everywhere-lost\" style=\"color:#023368\"><strong>Location Isn\u2019t Everything: Traders Everywhere Lost<\/strong>&nbsp;<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\" style=\"line-height:1.8;text-align:justify\">It doesn\u2019t matter if you\u2019re trading from a metropolis or a small town\u2014traders across states saw similar average losses. Southern states like Telangana and Andhra Pradesh stood out with higher average losses.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-text-color has-link-color wp-elements-9\" id=\"location-wise-losses-of-f-o-traders-fy-24\" style=\"color:#023368\"><strong>Location-wise Losses of F&amp;O Traders (FY24)<\/strong>&nbsp;<\/h2>\n\n\n\n<figure class=\"wp-block-table\"><table><thead><tr><th><mark style=\"background-color:rgba(0, 0, 0, 0);color:#ec4d37\" class=\"has-inline-color\"><strong>State\/City<\/strong>&nbsp;<\/mark><\/th><th><mark style=\"background-color:rgba(0, 0, 0, 0);color:#ec4d37\" class=\"has-inline-color\"><strong>Number of Traders (in lakh)<\/strong>&nbsp;<\/mark><\/th><th><mark style=\"background-color:rgba(0, 0, 0, 0);color:#ec4d37\" class=\"has-inline-color\"><strong>Average Per Person Loss (\u20b9)<\/strong>&nbsp;<\/mark><\/th><\/tr><\/thead><tbody><tr><td><strong>Telangana<\/strong>&nbsp;<\/td><td>2.07&nbsp;<\/td><td>\u20b91,97,000&nbsp;<\/td><\/tr><tr><td><strong>Uttar Pradesh<\/strong>&nbsp;<\/td><td>9.28&nbsp;<\/td><td>\u20b91,45,000&nbsp;<\/td><\/tr><tr><td><strong>Andhra Pradesh<\/strong>&nbsp;<\/td><td>2.11&nbsp;<\/td><td>\u20b91,45,000&nbsp;<\/td><\/tr><tr><td><strong>Bihar<\/strong>&nbsp;<\/td><td>3.57&nbsp;<\/td><td>\u20b91,45,000&nbsp;<\/td><\/tr><tr><td><strong>Madhya Pradesh<\/strong>&nbsp;<\/td><td>4.28&nbsp;<\/td><td>\u20b91,45,000&nbsp;<\/td><\/tr><tr><td><strong>West Bengal<\/strong>&nbsp;<\/td><td>3.94&nbsp;<\/td><td>\u20b91,37,000&nbsp;<\/td><\/tr><tr><td><strong>Tamil Nadu<\/strong>&nbsp;<\/td><td>3.04&nbsp;<\/td><td>\u20b91,37,000&nbsp;<\/td><\/tr><tr><td><strong>Punjab<\/strong>&nbsp;<\/td><td>2.28&nbsp;<\/td><td>\u20b91,35,000&nbsp;<\/td><\/tr><tr><td><strong>Maharashtra<\/strong>&nbsp;<\/td><td>18.78&nbsp;<\/td><td>\u20b91,35,000&nbsp;<\/td><\/tr><tr><td><strong>Karnataka<\/strong>&nbsp;<\/td><td>4.02&nbsp;<\/td><td>\u20b91,35,000&nbsp;<\/td><\/tr><tr><td><strong>Gujarat<\/strong>&nbsp;<\/td><td>10.09&nbsp;<\/td><td>\u20b91,24,000&nbsp;<\/td><\/tr><tr><td><strong>Haryana<\/strong>&nbsp;<\/td><td>3.10&nbsp;<\/td><td>\u20b91,25,000&nbsp;<\/td><\/tr><tr><td><strong>Delhi<\/strong>&nbsp;<\/td><td>3.41&nbsp;<\/td><td>\u20b91,10,000&nbsp;<\/td><\/tr><tr><td><strong>Rajasthan<\/strong>&nbsp;<\/td><td>5.37&nbsp;<\/td><td>\u20b999,000&nbsp;<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\" style=\"line-height:1.8;text-align:justify\">This table shows that <strong>Telangana<\/strong> leads with the highest average per person losses, followed by <strong>Uttar Pradesh<\/strong>, <strong>Andhra Pradesh<\/strong>, and other regions. <strong>Rajasthan<\/strong> traders experienced the lowest average losses among the listed states.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-text-color has-link-color wp-elements-10\" id=\"new-traders-a-painful-start\" style=\"color:#023368\"><strong>New Traders: A Painful Start<\/strong>&nbsp;<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\" style=\"line-height:1.8;text-align:justify\"><strong>42 lakh new traders<\/strong> entered the F&amp;O game for the first time in FY24. Unfortunately, <strong>92.1% of them<\/strong> suffered losses, averaging around \u20b946,000 per person.&nbsp;<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><thead><tr><th><mark style=\"background-color:rgba(0, 0, 0, 0);color:#ec4d37\" class=\"has-inline-color\"><strong>Trader Category<\/strong>&nbsp;<\/mark><\/th><th><mark style=\"background-color:rgba(0, 0, 0, 0);color:#ec4d37\" class=\"has-inline-color\"><strong>Average Loss (\u20b9)<\/strong>&nbsp;<\/mark><\/th><th><mark style=\"background-color:rgba(0, 0, 0, 0);color:#ec4d37\" class=\"has-inline-color\"><strong>Percentage of Loss-Makers<\/strong>&nbsp;<\/mark><\/th><\/tr><\/thead><tbody><tr><td>New Traders&nbsp;<\/td><td>\u20b946,139&nbsp;<\/td><td>92.1%&nbsp;<\/td><\/tr><tr><td>Regular Traders&nbsp;<\/td><td>\u20b91,50,477&nbsp;<\/td><td>88.7%&nbsp;<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<figure class=\"wp-block-image size-large\"><a href=\"https:\/\/open.navia.co.in\/index-navia.php?utm_source=Organic&amp;utm_medium=blog&amp;utm_campaign=blog&amp;utm_content=options_CTA\"><img fetchpriority=\"high\" decoding=\"async\" width=\"1024\" height=\"149\" src=\"https:\/\/navia.co.in\/blog\/wp-content\/uploads\/2024\/06\/2-5-1024x149.png\" alt=\"Navia - demat account\" class=\"wp-image-2966\" style=\"max-width:100%;height:auto\" srcset=\"https:\/\/navia.co.in\/blog\/wp-content\/uploads\/2024\/06\/2-5-1024x149.png 1024w, https:\/\/navia.co.in\/blog\/wp-content\/uploads\/2024\/06\/2-5-300x44.png 300w, https:\/\/navia.co.in\/blog\/wp-content\/uploads\/2024\/06\/2-5-150x22.png 150w, https:\/\/navia.co.in\/blog\/wp-content\/uploads\/2024\/06\/2-5-768x112.png 768w, https:\/\/navia.co.in\/blog\/wp-content\/uploads\/2024\/06\/2-5.png 1028w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/a><\/figure>\n\n\n\n<h2 class=\"wp-block-heading has-text-color has-link-color wp-elements-11\" id=\"conclusion-the-pros-are-cashing-in-while-retail-is-taking-the-hit\" style=\"color:#023368\"><strong>Conclusion: The Pros Are Cashing In, While Retail Is Taking the Hit<\/strong>&nbsp;<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\" style=\"line-height:1.8;text-align:justify\">It\u2019s clear that <strong>proprietary traders<\/strong> and <strong>FPIs<\/strong> are the ones making money in the F&amp;O segment, thanks to the dominance of algorithmic trading. Meanwhile, <strong>retail traders<\/strong>, especially younger and new entrants, are bearing the brunt of losses. With high transaction costs and the complexities of the market, retail investors should approach derivatives with caution, as the data clearly suggests that it\u2019s a challenging arena for them.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\" style=\"line-height:1.8;text-align:justify\">Fortunately, platforms like <strong>Navia<\/strong>, with its <a href=\"https:\/\/navia.co.in\/open-options-trading-account\" title=\"\">zero brokerage on f&amp;o<\/a> plans<strong>,<\/strong>can help traders save on costs, giving them a better chance at managing their funds efficiently in a competitive market.\u00a0<\/p>\n\n\n\n<p class=\"wp-block-paragraph\" style=\"line-height:1.8;text-align:justify\">To learn more about how you can be on the right side of <a href=\"https:\/\/navia.co.in\/blog\/what-is-options-trading\/?utm_source=blog&amp;utm_medium=internal_link&amp;utm_campaign=options_basics\">options trading<\/a> read here.&nbsp;<\/p>\n\n\n\n<h3 id=\"key-takeaways\" style=\"color:#ec4d37\">Key Takeaways<\/h3>\n<ul style=\"margin:1em 0;line-height:1.9\">\n<li style=\"margin-bottom:0.8em;line-height:1.8\">SEBI\u2019s FY22 to FY24 study found proprietary traders and FPIs made the profits, while individuals and other entities took the losses.<\/li>\n<li style=\"margin-bottom:0.8em;line-height:1.8\">Proprietary traders earned 96% of their profits through algorithmic trading and FPIs 97%, against just 13% algo participation among individuals.<\/li>\n<li style=\"margin-bottom:0.8em;line-height:1.8\">About 92% of individual traders lost money; in FY24 alone 91.1% lost an average of \u20b91.2 lakh each and only 7.2% made a profit.<\/li>\n<li style=\"margin-bottom:0.8em;line-height:1.8\">Losses were worst for the young: 93% of traders under 30 lost money, against 80% of those above 50.<\/li>\n<li style=\"margin-bottom:0.8em;line-height:1.8\">42 lakh people traded F&amp;O for the first time in FY24 and 92.1% of them lost money.<\/li>\n<li style=\"margin-bottom:0.8em;line-height:1.8\">Brokerage is the single largest slice of retail transaction costs in the study\u2019s cost table, at 50%.<\/li>\n<\/ul>\n\n\n\n<p class=\"has-text-align-center wp-block-paragraph\"><strong>DID YOU FIND THIS INTERESTING?<\/strong><\/p>\n\n\n\n<div class=\"wp-block-group is-nowrap is-layout-flex wp-container-core-group-is-layout-8f761849 wp-block-group-is-layout-flex\">\n<p class=\"wp-block-paragraph\"><strong>We&#8217;d love to hear from you &#8211;<\/strong> <\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><a href=\"https:\/\/form.typeform.com\/to\/bpQ8ZlDc?typeform-source=navia.co.in\"><img decoding=\"async\" width=\"300\" height=\"64\" src=\"https:\/\/navia.co.in\/blog\/wp-content\/uploads\/2025\/01\/Yes-No-Button.png\" alt=\"yes or no feedback form\" class=\"wp-image-8335\" style=\"max-width:100%;height:auto\" srcset=\"https:\/\/navia.co.in\/blog\/wp-content\/uploads\/2025\/01\/Yes-No-Button.png 300w, https:\/\/navia.co.in\/blog\/wp-content\/uploads\/2025\/01\/Yes-No-Button-150x32.png 150w\" sizes=\"(max-width: 300px) 100vw, 300px\" \/><\/a><\/figure>\n<\/div>\n\n\n\n<h2 class=\"wp-block-heading has-text-color has-link-color wp-elements-12\" id=\"frequently-asked-questions\" style=\"color:#023368\">Frequently Asked Questions<\/h2>\n\n\n\n<details class=\"wp-block-details is-layout-flow wp-block-details-is-layout-flow\" style=\"background:#f1f1f1;border-radius:4px;margin-bottom:10px\">\n<summary style=\"font-weight:600;font-size:17px;color:#1a2332;cursor:pointer;padding:16px 20px\">Who made money in options trading according to SEBI?<\/summary>\n\n<p class=\"wp-block-paragraph\" style=\"padding:0 20px 18px 20px;line-height:1.8;color:#333;margin:0\">Proprietary traders and foreign portfolio investors. SEBI\u2019s study of the equity derivatives segment for FY22 to FY24 shows proprietary traders made \u20b932,000 crore and FPIs \u20b926,900 crore, while domestic institutional investors made \u20b9200 crore.<\/p>\n\n<\/details>\n\n\n\n<details class=\"wp-block-details is-layout-flow wp-block-details-is-layout-flow\" style=\"background:#f1f1f1;border-radius:4px;margin-bottom:10px\">\n<summary style=\"font-weight:600;font-size:17px;color:#1a2332;cursor:pointer;padding:16px 20px\">How many individual F&amp;O traders lose money?<\/summary>\n\n<p class=\"wp-block-paragraph\" style=\"padding:0 20px 18px 20px;line-height:1.8;color:#333;margin:0\">About 92% of individual traders lost money over the study period. In FY24 alone, 91.1% of individual traders lost an average of \u20b91.2 lakh each, only 7.2% made a profit, and just 1% earned more than \u20b91 lakh in net profits.<\/p>\n\n<\/details>\n\n\n\n<details class=\"wp-block-details is-layout-flow wp-block-details-is-layout-flow\" style=\"background:#f1f1f1;border-radius:4px;margin-bottom:10px\">\n<summary style=\"font-weight:600;font-size:17px;color:#1a2332;cursor:pointer;padding:16px 20px\">Why do professional traders do better in F&amp;O?<\/summary>\n\n<p class=\"wp-block-paragraph\" style=\"padding:0 20px 18px 20px;line-height:1.8;color:#333;margin:0\">Algorithmic trading. Proprietary traders earned 96% of their profits using algorithmic strategies and FPIs 97%, while only 13% of individual traders used algos at all.<\/p>\n\n<\/details>\n\n\n\n<details class=\"wp-block-details is-layout-flow wp-block-details-is-layout-flow\" style=\"background:#f1f1f1;border-radius:4px;margin-bottom:10px\">\n<summary style=\"font-weight:600;font-size:17px;color:#1a2332;cursor:pointer;padding:16px 20px\">Do younger F&amp;O traders lose more?<\/summary>\n\n<p class=\"wp-block-paragraph\" style=\"padding:0 20px 18px 20px;line-height:1.8;color:#333;margin:0\">Yes. Traders under 30 made up 43% of F&amp;O traders in FY24 and 93% of them lost money. The loss rate falls with age: 91% for 30-40, 87% for 40-50 and 80% above 50.<\/p>\n\n<\/details>\n\n\n\n<details class=\"wp-block-details is-layout-flow wp-block-details-is-layout-flow\" style=\"background:#f1f1f1;border-radius:4px;margin-bottom:10px\">\n<summary style=\"font-weight:600;font-size:17px;color:#1a2332;cursor:pointer;padding:16px 20px\">Do first-time F&amp;O traders fare any better?<\/summary>\n\n<p class=\"wp-block-paragraph\" style=\"padding:0 20px 18px 20px;line-height:1.8;color:#333;margin:0\">No. 42 lakh new traders entered F&amp;O for the first time in FY24 and 92.1% of them suffered losses, averaging around \u20b946,139 per person. Regular traders lost more in absolute terms, averaging \u20b91,50,477.<\/p>\n\n<\/details>\n\n\n\n<details class=\"wp-block-details is-layout-flow wp-block-details-is-layout-flow\" style=\"background:#f1f1f1;border-radius:4px;margin-bottom:10px\">\n<summary style=\"font-weight:600;font-size:17px;color:#1a2332;cursor:pointer;padding:16px 20px\">Does where you trade from make a difference?<\/summary>\n\n<p class=\"wp-block-paragraph\" style=\"padding:0 20px 18px 20px;line-height:1.8;color:#333;margin:0\">Not much. The study shows traders across states saw similar average losses. Telangana recorded the highest average per person loss at \u20b91,97,000 and Rajasthan the lowest at \u20b999,000.<\/p>\n\n<\/details>\n\n\n\n<p class=\"wp-block-paragraph\" style=\"font-size:13px;line-height:1.6;color:#777\"><strong>DISCLAIMER: Investments in the securities market are subject to market risks, read all the related documents carefully before investing. The securities quoted are exemplary and are not recommendatory. Brokerage will not exceed the SEBI prescribed limit.<\/strong> Full disclaimer: <a href=\"https:\/\/bit.ly\/naviadisclaimer\" target=\"_blank\" rel=\"noopener\">https:\/\/bit.ly\/naviadisclaimer<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The SEBI report on the equity derivatives segment (FY22-FY24) revealed that Proprietary Traders and Foreign Portfolio Investors (FPIs) walked away with the profits, mostly thanks to algorithmic trading, while Individual Traders and Others (like Corporates and NRIs) bore the brunt of losses. In short, the experts cashed in, and retail traders, particularly the younger ones, [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":8232,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"ub_ctt_via":"","_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_post_was_ever_published":false},"categories":[185],"tags":[328,596,289,27,1134],"class_list":["post-6841","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-options-trading","tag-derivatives-trading","tag-option-traders","tag-options","tag-options-trading","tag-retail-investors"],"aioseo_notices":[],"featured_image_src":"https:\/\/navia.co.in\/blog\/wp-content\/uploads\/2024\/11\/Who-made-money-in-options.png","author_info":{"display_name":"Navia Markets","author_link":"https:\/\/navia.co.in\/blog\/author\/tradeplusonline\/"},"jetpack_featured_media_url":"https:\/\/navia.co.in\/blog\/wp-content\/uploads\/2024\/11\/Who-made-money-in-options.png","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/navia.co.in\/blog\/wp-json\/wp\/v2\/posts\/6841","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/navia.co.in\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/navia.co.in\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/navia.co.in\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/navia.co.in\/blog\/wp-json\/wp\/v2\/comments?post=6841"}],"version-history":[{"count":34,"href":"https:\/\/navia.co.in\/blog\/wp-json\/wp\/v2\/posts\/6841\/revisions"}],"predecessor-version":[{"id":19209,"href":"https:\/\/navia.co.in\/blog\/wp-json\/wp\/v2\/posts\/6841\/revisions\/19209"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/navia.co.in\/blog\/wp-json\/wp\/v2\/media\/8232"}],"wp:attachment":[{"href":"https:\/\/navia.co.in\/blog\/wp-json\/wp\/v2\/media?parent=6841"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/navia.co.in\/blog\/wp-json\/wp\/v2\/categories?post=6841"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/navia.co.in\/blog\/wp-json\/wp\/v2\/tags?post=6841"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}