--- title: "SEBI F&O loss studies: what 9 in 10 losing traders means" description: "SEBI's August 2026 studies of individual F&O traders: who is counted, gross against net, what the data shows, and why most lose." source_url: "https://www.rupeecase.com/learn/path-12/module-12-3-sebi-fo-loss-studies" --- [Path 12 3 of 9](/learn/path-12/)Read SEBI's loss studies before your first trade[Next 12.4](/learn/path-12/module-12-4-contract-specs-lots-and-expiries) In August 2026 SEBI published two studies of the same people: individuals who trade equity derivatives in India. One counts the money. The other watches how they behave. They are the first thing I would hand a friend who is about to open an F&O account. The headline, from the profitability study: 87.7% of individual traders had a net loss in FY26, Rs 91,685 crore in all. This lesson reads the studies the way you would read a balance sheet: who is counted, which year, before or after costs, and what the number cannot tell you. 3By the end you can 1. Ask four questions of any loss number: who, which money, how big a sample, which edition. 2. Redo one row of SEBI's table and reproduce its headline share. 3. Explain five patterns that sit behind nine in ten losing, and what they do not prove. Watch in the terminal: which numbers am I looking at? A short tutorial on sample data. ## The idea, plainly A loss study is a report card for a whole market, and a report card is only as good as the questions put to it. Ask four. ### Who is counted? SEBI's "individual traders" are retail and high net worth traders together: resident individuals, HUFs, NRIs, sole proprietors and individuals investing through a PMS. Prop desks, foreign portfolio investors, funds and companies sit in separate categories. [Module F02](/learn/path-12/module-12-2-india-fo-market-map) maps them. ### Which money, and how much of the market? Gross means before costs. Net means after brokerage, exchange charges, STT, GST, stamp duty and SEBI's fee. In FY26 a little over eight in ten individuals lost money before costs, and 87.7% after them. The profitability study covers about nine in ten individual traders, through a sample of brokers. The behaviour study draws a random sample of about five thousand traders, and SEBI calls what it finds there indicative. ### Which edition? Numbers get revised. FY25's loss was restated upward when the broker sample grew from thirteen to fifteen brokers. The famous "9 out of 10" comes from SEBI's January 2023 study, which looked at FY19 and FY22, and SEBI's investor page still quotes it. The August 2026 studies say the same thing on a wider base. Quote the study, the month and the year, never just "SEBI says". Watch in the terminal: what do year to date and best week say? A short tutorial on sample data. ### What the studies found About nine in ten individual traders lost money in every year from FY22 to FY26. The share fell to 87.7% in FY26, the lowest of the five, in a year when the number of active traders fell by nearly a fifth. SEBI itself warns against reading that as better results. Net losses were Rs 91,685 crore in FY26, after a peak in FY25, and over the five years they passed three and a half lakh crore rupees. Individuals' net losses rose every year to FY25 and eased in FY26 Net loss after costs, in SEBI's sample of about nine in ten individual traders. FY25 is the restated figure after the broker sample widened. Each bar is one financial year, April to March. Source: SEBI, Profitability of Individual Traders in the Equity Derivatives Segment (FY25 to FY26), Aug 2026, Table 32. As of 20 Aug 2026. Brokerage and STT made up seven tenths of individuals' costs in FY26 Shares of total transaction costs in SEBI's sample. STT's share of costs has roughly doubled since FY22. Source: SEBI, Profitability of Individual Traders in the Equity Derivatives Segment (FY25 to FY26), Aug 2026, chart 39. As of 20 Aug 2026. Trading longer did not lower the share of losers: it raised it Individual traders in SEBI's FY22 to FY26 data, grouped by the number of years they traded without a break. A net loss means total profit and loss below zero over those years. Source: SEBI, Trading Behaviour of Individual Traders in the Equity Derivatives Segment (FY25 to FY26), Aug 2026, Table 15. As of 20 Aug 2026. Read 3 more paragraphs, 175 words Options carry over nine tenths of individuals' losses, and nearly all individual traders mainly buy options. Sellers lose less often but not less: the few who mainly sold options had the lowest share of loss makers, and an average loss, when they lost, more than ten times that of those who mainly bought. Win rate is not expectancy, and [module F13](/learn/path-14/module-14-3-option-buyer-vs-seller) shows the same trap on a dated Nifty week. Costs sit on top. Individuals paid about Rs 25,000 crore a year in costs in FY25 and FY26. For loss makers, costs ate about a third of their gross losses, against about a fifth of the gross profits of profit makers. Time did not help. The longer a trader had traded without a break, the more likely a net loss. And losses repeat: of the traders who lost in each of the two years before, about nine in ten lost again. Among those active in all five years from FY22 to FY26, about two thirds lost in every year and 0.5% won in every year. ### So why do nine in ten lose? SEBI gives patterns, not a proof. Five stand out. 1. **It is close to zero sum before costs.** Individuals' gross losses were broadly matched by the gross profits of companies and institutions, and costs come on top. 2. **The product.** In FY26 more than half of index option turnover happened on the expiry day itself, where a small premium can go to zero within hours. 3. **Losses outsize gains.** The average loss of a loss maker ran about a fifth above the average profit of a profit maker. 4. **Losses repeat.** Most who lost in two years in a row lost again, and many kept trading. 5. **The other side is organised.** Nearly all of the gross profit of FPIs and prop traders came from entities that use algorithms. Few individuals do. These describe groups, and none of them is a forecast for one trader. ## Worked example: redo one row of SEBI's table A headline is a claim you can check. Table 32 of the profitability study gives FY26 as a row, and the division takes a minute. | Step | What we read, FY26 | Value | | --- | --- | --- | | 1 | Individual traders in the sample, lakh | 78.60 | | 2 | Of them, with a net loss, lakh | 68.90 | | 3 | Share with a net loss: step 2 divided by step 1 | 87.7% | | 4 | Net loss of all of them, after costs | Rs 91,685 crore | | 5 | Average per trader: step 4 divided by step 1 | Rs 1.17 lakh | The term this section turns on: Net loss From the module glossary; every term is in the Learn glossary too. Source: Module 12.3, Read SEBI's loss studies before your first trade. Read 2 more paragraphs, 134 words The division gives the 87.7% SEBI prints, and the average in step 5 matches SEBI's printed figure once its unrounded counts are used. Three things to notice. The sample is the traders SEBI could see through its brokers, so it is a large share of the market and not the whole of it. The loss is net, after every charge. And the average hides the spread: SEBI finds that nearly a quarter of traders account for close to nine tenths of the losses. Now take the costs out of the picture. Without them a little over eight in ten were still losing, so most of the loss is the trading itself, and costs tip the rest. SEBI counts several lakh traders each year who made a gross profit and ended with a net loss. ## The common mistake The belief: Nine in ten lose, so one in ten wins every year, and I will be one of them. The tenth person is a different one each year. Among traders who were active in all five years, only a tiny share won in every year, and about two thirds lost in every year. The share of losers rose with the years traded. A base rate is where you start before skill, costs and the product are counted, so read it as the odds of the room, then ask which of the five patterns you would be fighting. ## Key takeaways * Nearly nine in ten individual traders lost money in each year from FY22 to FY26. * Net means after costs and gross means before. Always check which one a number is. * Options carry over nine tenths of individual losses, and nearly all individuals buy them. * Trading longer did not lower the share of losers. It raised it. * The one in ten who win is a different group each year. * Quote the study, the month and the year. Numbers get revised. Two terms to hold on to from 12.3 From the module glossary. Source: Module 12.3, Read SEBI's loss studies before your first trade. **Before you trade.** Derivatives trading carries a high risk of loss. SEBI's study "Profitability of Individual Traders in the Equity Derivatives Segment (FY25 to FY26)" (August 2026) found that 87.7% of individual traders in equity F&O made net losses in FY26, with aggregate net losses of Rs 91,685 crore. [Read the SEBI study](https://www.sebi.gov.in/reports-and-statistics/research/aug-2026/study-profitability-of-individual-traders-in-the-equity-derivatives-segment-fy25-fy26-_103835.html) What does Read SEBI's loss studies before your first trade cover?Two SEBI studies of the same traders, one on the money and one on behaviour. Who is counted, what is measured, and what the numbers cannot tell you. It works through The idea, plainly, Worked example: redo one row of SEBI's table, The common mistake, Key takeaways. It is module 12.3 of Path 12, Derivatives Basics and Rules, about 8 minutes of reading, free. AF&O on RupeeCase ## Hedging only, in development F&O at RupeeCase will do one job: protect a portfolio you already own, by a rule published before it runs. No speculation, no naked option selling, no leveraged bets. It is not available yet. [How hedging will work](/hedging)[Sign up for RupeeCase](https://invest.rupeecase.com/signup) [No hedgeFalls with the marketWith a putA floor, for a premiumIllustration with made up numbers, not a product and not a recommendation.](/hedging) QQuick check ## 10 questions, 7 to pass. Each attempt draws 10 of the 15 questions in this module's bank, and a retake draws a fresh set. A pass gives this module's Certificate of Completion. Your result stays on this device and counts towards the Path 12 certificate. 7 of 10 correct passes module 12.3 Every answer is explained when you check; a retake is always free. Source: RupeeCase Learn quiz rules (70% to pass). Passed ### Certificate ID Download PNGPrint or save as PDF[Check the ID](/learn/certificates/verify) Self paced and unproctored. A record of completing free education by RupeeCase; not a NISM certificate and not endorsed by NISM, NSE, BSE or SEBI. It qualifies no one to deal, advise or publish research. CCheck yourself ## Path 12 so far. Your quick check results on this device, stop by stop. Stop 3 of 9 on Path 12 Derivatives Basics and Rules: every live stop, this module ringed. Source: RupeeCase Learn, Path 12. 1. [12.1Why derivatives exist: forwards, futures and options in one storyNot yet](/learn/path-12/module-12-1-why-derivatives-exist) 2. [12.2India's F&O market map: exchanges, clearing, SEBI and who tradesNot yet](/learn/path-12/module-12-2-india-fo-market-map) 3. [12.3Read SEBI's loss studies before your first tradeNot yet](/learn/path-12/module-12-3-sebi-fo-loss-studies#quiz) 4. [12.4Contract specs that matter now: lots, expiry days, strikes and settlementNot yet](/learn/path-12/module-12-4-contract-specs-lots-and-expiries) 5. [12.5Margins without jargon: SPAN, exposure, expiry day margin and upfront premiumNot yet](/learn/path-12/module-12-5-fo-margins-explained) 6. [12.6The real cost of a trade: STT, exchange fees, SEBI fee, GST and stamp dutyNot yet](/learn/path-12/module-12-6-cost-of-an-fo-trade) 7. [12.7Position sizing and risk of ruin for F&O beginnersNot yet](/learn/path-12/module-12-7-position-sizing-and-risk-of-ruin) 8. [12.8Red flags in F&O: tip groups, too good claims and registration checksNot yet](/learn/path-12/module-12-8-fo-red-flags) 9. [12.9Behaviour in F&O: loss chasing and what SEBI's behaviour study foundNot yet](/learn/path-12/module-12-9-fo-trading-behaviour) 10. [TPath test, 30 questionsNot yet](/learn/path-12/module-12-9-fo-trading-behaviour#pathTestSection) Path 12 in reading time: 72 minutes over 9 modules Minutes of reading per module, this one in amber. Source: RupeeCase Learn, Path 12. Explore next ## Put the module to work. * [ToolOption payoff builderLegs on a dated Nifty chain, breakevens and charges](/learn/tools/payoff-builder) * [Free module 12.2India's F&O market map: exchanges, clearing, SEBI and who trades8 min read](/learn/path-12/module-12-2-india-fo-market-map) * [Free module 14.3Buyer or seller: payoffs, margin, win rate and expectancy9 min read](/learn/path-14/module-14-3-option-buyer-vs-seller) * [Free module 12.7Position sizing and risk of ruin for F&O beginners8 min read](/learn/path-12/module-12-7-position-sizing-and-risk-of-ruin) * [Free module 12.8Red flags in F&O: tip groups, too good claims and registration checks7 min read](/learn/path-12/module-12-8-fo-red-flags) * [Free module 12.9Behaviour in F&O: loss chasing and what SEBI's behaviour study found9 min read](/learn/path-12/module-12-9-fo-trading-behaviour) Community ## Join my WhatsApp group. Scan the code, fillFill one short form, and join my WhatsApp group. Slides, sources, factsheets and the rebalance logs live there, and members join a daily Google Meet with me. New to RupeeCase? [Getting started](/getting-started) [See the terminal](/terminal) [Sign up for RupeeCase](https://invest.rupeecase.com/signup) [Join the WhatsApp group](https://forms.gle/C6HMtM1Z2GfeocQV7) [One form, one group](https://forms.gle/C6HMtM1Z2GfeocQV7)Scan with your phone camera SSources ## Go to the source. 6 sources, SEBI the most cited The publisher of each source listed below. Source: Module 12.3 source list. 1. [SEBI, Profitability of Individual Traders in the Equity Derivatives Segment (FY25 to FY26), Aug 2026](https://www.sebi.gov.in/reports-and-statistics/research/aug-2026/study-profitability-of-individual-traders-in-the-equity-derivatives-segment-fy25-fy26-_103835.html) SEBI 2. [SEBI, Trading Behaviour of Individual Traders in the Equity Derivatives Segment (FY25 to FY26), Aug 2026](https://www.sebi.gov.in/reports-and-statistics/research/aug-2026/study-trading-behaviour-of-individual-traders-in-the-equity-derivatives-segment-fy25-fy26-_103836.html) SEBI 3. [SEBI, Analysis of Profits and Losses in the Equity Derivatives Segment (FY22 to FY24), September 2024](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) SEBI 4. [SEBI, Analysis of Profit and Loss of Individual Traders dealing in Equity F&O Segment, January 2023](https://www.sebi.gov.in/reports-and-statistics/research/jan-2023/study-analysis-of-profit-and-loss-of-individual-traders-dealing-in-equity-fando-segment_67525.html) SEBI 5. [SEBI Investor, Understanding derivatives (risk note quoting the January 2023 study)](https://investor.sebi.gov.in/understanding_derivatives.html) SEBI 6. Chague, F., De-Losso, R. and Giovannetti, B., Day Trading for a Living?, Brazilian Review of Finance, 18(2), 2020 (cited in SEBI's August 2026 study) Paper GTerms ## 6 terms from this module. Net lossA loss after every cost: brokerage, exchange charges, STT, GST, stamp duty and the SEBI fee. Gross lossA trading loss before those costs. SEBI reports both because costs push some small gross winners into net losses. Loss makerA trader whose total profit and loss for the period is below zero. Base rateHow often an outcome happens in the whole group, before anything is known about one member of it. Expiry day tradingTrading in an option on the day it expires. SEBI calls it zero days to expiry. Zero sumA market where, before costs, one side's gain is exactly the other side's loss. [All 230 terms in the glossary](/learn/glossary) [Question people askWhy do 9 out of 10 F&O traders lose money?A short answer with a dated chart](/learn/questions/why-fo-traders-lose)[Related module12.2 India's F&O market map: exchanges, clearing, SEBI and who trades8 min, Beginner](/learn/path-12/module-12-2-india-fo-market-map)[Related module14.3 Buyer or seller: payoffs, margin, win rate and expectancy9 min, Beginner](/learn/path-14/module-14-3-option-buyer-vs-seller)[Pillar guideDerivatives and Quant115 modules across paths 12 to 19](/learn/derivatives) Education only, not investment advice, a research report or a recommendation to buy, sell or hold any security. RupeeCase (QC Alpha Technologies Pvt Ltd) is not registered with SEBI as an investment adviser or research analyst. Contracts and prices shown are for illustration only, come from NSE end of day files at least 30 days old, and are not recommendatory. Derivatives trading carries a high risk of loss.