SEBI found that active individual equity-derivatives traders fell 18% to 87.5 lakh in FY26, but 87.7% still recorded net losses. Aggregate losses declined to ₹91,685 crore, while the average loss per active trader increased.
SEBI releases FY26 derivatives trading study
The Securities and Exchange Board of India, or SEBI, released its study on the profitability of individual traders in the equity derivatives segment on 20 August 2026.
The study examines FY25 and FY26 outcomes for individual participants in equity futures and options. It uses client-level and transaction-level data covering about 90% of individual traders in the segment.
SEBI’s findings show that participation declined in FY26, but loss-making remained widespread among active individual traders.
The report is a regulatory research publication, not a new restriction on futures and options trading. It documents market outcomes and does not determine the result of any individual trader or strategy.
Fewer individual traders participated in FY26
The number of active individual traders in the equity derivatives segment declined 18% to 87.5 lakh in FY26 from 106.2 lakh in FY25.
New individual-trader entries fell nearly 40% to 20.8 lakh from 34.3 lakh in the previous year. At the same time, about 46 lakh participants from FY25 did not return to the segment in FY26, compared with 26 lakh exits in FY25.
The participation data suggests a moderation in individual derivatives activity. However, the study does not identify one single reason for the change in trader numbers.
SEBI had introduced measures in late 2024 to moderate index-derivatives activity, including restrictions on weekly index-expiry contracts, higher contract sizes and tighter expiry-day risk controls. The FY26 data includes the period after these measures, but it does not on its own establish how much each measure affected participation or profitability.
Aggregate losses fall, but average loss rises
Individual traders’ aggregate net losses declined to ₹91,685 crore in FY26 from about ₹1.12 lakh crore in FY25. The fall in total losses broadly matched the reduction in the number of active traders.
However, the average net loss per active individual trader increased about 2% to ₹1.17 lakh in FY26, compared with ₹1.13 lakh in the previous year.
| Metric | FY25 | FY26 |
|---|---|---|
| Active individual traders | 106.2 lakh | 87.5 lakh |
| Aggregate net losses | About ₹1.12 lakh crore | ₹91,685 crore |
| Average loss per active trader | ₹1.13 lakh | ₹1.17 lakh |
| Traders with net losses | 90.9% | 87.7% |
| New individual-trader entries | 34.3 lakh | 20.8 lakh |
| Traders not returning from the previous year | 26 lakh | About 46 lakh |
The figures show why a decline in aggregate losses should not be read as an improvement in outcomes for every participant. Fewer active traders contributed to lower total losses, while the average loss per active trader rose.
Options accounted for most losses
SEBI found that 87.7% of individual traders incurred net losses in FY26. The proportion improved from 90.9% in FY25, but it remained high.
Options trading accounted for 92% of aggregate losses reported by individual traders in FY26. Futures and options are derivative instruments whose value is linked to an underlying security or index, but their risk and payoff structures differ.
The study’s result does not mean all F&O traders lost money. It indicates that a large majority of individual traders in the data set incurred net losses during FY26.
The data also shows why high activity, frequent options trades or large turnover should not be treated as evidence of profitability. Trading outcomes depend on costs, price movements, risk controls and the specific approach used by each participant.
Institutional profits and market structure
The SEBI analysis also reported gross profits of ₹44,483 crore for proprietary trading desks and ₹13,896 crore for foreign portfolio investors in FY26.
According to the study, algorithmic entities generated 99% of the profits reported by FPIs and proprietary traders. These figures are separate participant-category aggregates and should not be interpreted as a direct transfer of losses from individual traders to institutional firms.
The study provides a view of differences in outcomes across market participants. It does not establish that one category’s gains were caused by another category’s losses or by a single market practice.
What retail F&O participants can take from the data
SEBI’s FY26 report highlights the need to assess derivatives trading through realised financial outcomes rather than trading volume alone. The data also underlines the importance of understanding the specific risks of options contracts.
For users of a stock trading platform, the findings offer a broader market-level perspective on individual equity-derivatives outcomes. They do not provide a basis for assuming profits or losses from any future trade.
Online trading in futures and options involves market risk, and SEBI’s analysis shows that a large share of individual traders reported net losses during FY26. Participants should distinguish the report’s aggregate findings from their own financial circumstances, trading costs and risk capacity.
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