SEBI Study: Analysis of Profit and Loss of Individual Traders dealing in Equity Futures & Options Segment

SEBI has released a very interesting study on analysis of retail investors dealing in  Equity Futures & Options Segment.

Key findings:

• There has been a significant increase of over 500% in the number of individual traders in the equity F&O segment in FY 2021- 22, as compared to FY 2018-19.
• On average, loss makers registered net trading loss close to ₹ 50,000 in FY 2021-22. The average absolute net loss of a loss maker
  was over 15 times the net profit made by a profit maker.
• Over and above the net trading losses incurred, loss makers expended an additional 28%* of net trading losses as transaction costs.
• Those making net trading profits incurred between 15% to 50% of such profits as transaction cost.

Well, whether an investor makes losses or makes profits, the exchanges/brokers which collect majority of the transaction costs make major gains.