Overview
- In fiscal 2026 the number of active individual derivatives traders fell about 18% to 87.5 lakh and new entries dropped roughly 40%, reversing years of retail expansion.
- Aggregate net losses for individual traders eased to ₹91,685 crore in FY26, yet the average loss per losing trader rose to ₹1.17 lakh, leaving remaining participants worse off on average.
- Options dominated the damage: around 99% of individual traders used options and those contracts accounted for roughly 92% of retail losses, with very short‑dated index options concentrated near expiry.
- Losses were highly concentrated, with about 23% of traders responsible for nearly 90% of total losses, and high‑frequency or long‑active traders recording the largest average losses.
- Transaction costs and small portfolios amplified harm: trading fees cost individuals about ₹24,800 crore in FY25–FY26 and many traders under 30 or with under ₹1 lakh in equities suffered disproportionately, pointing to persistent structural risk despite FY25 regulatory curbs.