SEBI’s latest studies show that 87.7% of individual traders lost money in equity derivatives during FY26. Options accounted for around 92% of their aggregate losses, while transaction costs remained a significant expense.
If you trade in futures and options, the latest data gives you a reason to look beyond the possibility of quick returns.
The Securities and Exchange Board of India (SEBI) has released two studies on profitability and trading behaviour in the equity derivatives segment. The findings show that fewer individuals traded in FY26, but most of those who continued trading still lost money.
Fewer traders entered derivatives
The number of active individual traders fell by around 20%, from 98.1 lakh in FY25 to 78.6 lakh in FY26. New entrants declined by around 40%.
So, if you felt that fewer people around you were actively trading derivatives, the data supports that trend. However, the bigger point is what happened to those who continued.
Most of the traders still lost money
Individual traders’ aggregate net losses fell to around ₹91,685 crore in FY26 from ₹1.12 lakh crore in FY25.
That sounds like an improvement. But 87.7% of individual traders still made losses. The average loss was around ₹1.17 lakh per trader.
Options were responsible for most of the losses. Around 92% of individual traders’ aggregate losses came from options trading.
So, if options are a part of your trading activity, this is the number that deserves your attention.
Your trading costs matter too
Your actual trading result is not just about whether you made a profit on a trade.
Individual traders paid around ₹25,000 crore in transaction costs during FY26. Over FY22 to FY26, these costs added up to approximately ₹1 lakh crore.
Trading was also heavily concentrated around expiry. Around 59% of index options turnover occurred in contracts close to expiry.
Frequent trading around expiry can therefore mean more transactions and higher costs, which can affect your overall outcome.
What should you take from this?
This does not mean you will automatically lose money if you trade derivatives.
But the numbers do show that consistent profitability is difficult for individuals.
If you are using derivatives, it is worth asking yourself what role they play in your overall financial plan. Are you taking a calculated position, or are you relying on frequent trades to generate returns?
Your long-term financial goals generally need a different approach from short-term trading.
The latest data is a useful reminder that the possibility of making quick returns comes with a very real possibility of losing money too.
Source: Securities and Exchange Board of India (SEBI), Press Release No. 50/2026.
