A report by the Securities and Exchange Board of India (SEBI) has revealed a sobering reality: retail traders lost a total of $33 billion (₹2.88 lakh crore) in the equity futures and options (F&O) market between April 2021 and March 2025.
The data shows that roughly 9 out of 10 retail traders (91%) lose money in this segment. Even more concerning is the speed at which these losses are growing. In the most recent fiscal year (FY25), losses hit a record ₹1.06 lakh crore, a 41% jump from the previous year. On average, an individual trader lost over ₹1.1 lakh in FY25.
Who is losing the most?
The report highlights that young people are flocking to the market; traders under 30 now make up 43% of the segment, yet 93% of them are losing money. Furthermore, 75% of all traders earn less than ₹5 lakh annually, meaning many are risking their essential savings on high-risk bets.
The Cost of Trading
Beyond market losses, traders are being drained by “hidden” costs. Over three years, retail participants paid over ₹50,000 crore in brokerage fees and taxes. While retail investors struggle, institutional players and algorithmic traders continue to book massive profits. In response, SEBI has introduced stricter rules to limit excessive speculation and protect small investors from further financial ruin.
