Why do people lose money in F&O trading?

Insufficient Knowledge: Many investors start trading futures and options without fully understanding how they work. This can lead to mistakes and big losses because they don't have the necessary knowledge to make informed decisions.

Why do people lose money in F&O trading?

Reasons for these losses include market volatility, small price changes, transaction costs, and psychological factors that work against the average trader. On average, each trader spent Rs 26,000 just on transaction fees in FY24.

How many people lost in F&O?

SEBI's latest study shows that over 93% of retail traders in the F&O segment lose money, together losing ₹75,000 crore in just one year. Over the last three years, retail losses in F&O have crossed ₹1.8 lakh crore. Let that sink in. 9 out of 10 people lose, yet the trades keep flowing.

Do people make money in F&O?

But F&O trading is not easy. You may earn small amounts in many trades but once your strategy got wrong you may lose all your profits even your all capital may become ZERO. If you want to become profitable in F&O you should Trade with small amount with proper strategy.

Why am I losing so much money in forex trading?

Losing money in Forex trading can often be due to inadequate risk management, lack of a consistent strategy, or insufficient market analysis. Emotional decision-making and over-leveraging are also common pitfalls.

Why did 93% of F&O traders lose money? | F&O trading | Futures & Options | Stock Market | SEBI | BSE

Why do 90% of traders lose money?

The emotional aspect of trading often leads to irrational decisions like panic selling. When the market moves unfavourably, many traders, especially those who are inexperienced, tend to panic and exit their positions hastily. This panic selling often occurs at the worst possible time, leading to significant losses.

Why do 95% of forex traders lose money?

95% of Forex traders lose money, because they lack proper training and/or self awareness. Losing money in Forex is not a Forex problem. It's a human problem. Rev Friday Echeme is willing to put you among the world's 5% Forex traders who consistently take money from the market.

Is F&O like gambling?

“Like gambling, trading F&O can trigger an emotional response that is addictive, with traders continuing to place bets in the hope of recovering losses," he explains. Cognitive biases, such as the gambler's fallacy and overconfidence bias, further fuel this addiction.

Who is the youngest trader millionaire in India?

Jatin Rao's journey began when he started trading at just 13 years old. While most teenagers were busy with school and hobbies, Jatin was studying markets, practicing trades, and sharpening his instincts. By the age of 17, he had already achieved the rare milestone of becoming India's youngest millionaire trader.

Is it mandatory to show F&O loss in ITR?

You must report F&O losses below "Income from Business or Profession." Mention the proper business code for F&O trading. Usually, the F&O code is 14013. Specify accurate information (in relevant columns) about your F&O transactions, including losses, profits, and turnover.

How to stop loss in F&O?

A stop-loss order automatically closes a losing position once the price hits the pre-specified level. The challenge lies in the right place to set a stop loss. It is basically a matter of picking a price level beyond which a trade bias is no longer valid.

Why is F&O so risky?

Despite their sophistication, F&O instruments are inherently risky. Their value hinges on the performance of the underlying asset, and small miscalculations can lead to significant financial damage.

Who is the biggest F&O trader in India?

1. Rakesh Jhunjhunwala: The "Warren Buffett of India" Rakesh Jhunjhunwala is undoubtedly one of India`s most influential and well-known traders. Known as the "big bull" in the Indian stock market, his journey is a story of brilliance and perseverance from a small investor to a billionaire dealer.

What is the dark side of options trading?

You can lose way more on options than you earn

However, if the stock falls, the trader must purchase the stock at the strike price. And the stock could fall so much that the trader could easily lose five or 10 times the value of the premium that was received.

What is the success rate of F&O?

Futures and Options (F&O) trading is often touted as a way to make significant profits in the financial markets. However, the harsh reality is that 90% of traders end up losing money in F&O trading.

Why do I keep losing money on options?

Why Do 90% of Options Traders Lose Money? Some of the most common reasons are overtrading, emotional trading, a lack of knowledge and experience, and no risk management.

Who is India's most trusted trader?

Who is the richest 22 year old in India?

According to the Hurun Rich List 2024, founders of quick commerce Zepto, Kaivalya Vohra (21) and Aadit Palicha (22), have emerged as the youngest billionaires in India, with a net worth of INR 3,600 crore and Rs 4,300 crore, respectively.

How much is Nikhil Kamath worth?

As of March 2025, Kamath is worth $2.6 billion, according to Forbes.

Who controls F&O?

The Securities and Exchange Board of India (SEBI) on Thursday announced a new set of rules for the equity Futures and Options (F&O) segment. These changes aim to improve transparency, control excessive speculation, and bring more stability to the market.

How many people lost money in F&O?

Let's not sugarcoat it: Retail F&O trading is bleeding Indian households dry. SEBI's FY 2025 report drops a truth bomb most don't want to hear—91% of retail F&O traders are losing money.

Is F&O better than equity?

Stocks are a good way to invest for the long term and grow your money steadily. Futures and options, on the other hand, are more like short-term bets that can help you make quick profits, but they come with more risk.

Why do so many people fail at forex?

Lack of Risk Assessment and Contingency Planning:

In conclusion, poor risk management is a major reason for forex trading failures. Traders must prioritize risk management in their trading strategy to protect their capital and increase their chances of success.

What is the number one mistake forex traders make?

Can I lose more than I invest in forex?

Forex trading can offer potential trading opportunities for both the short and long term, but there are also high risks associated with forex trading like losing more than the initial deposit.