Trading Trap
The SEBI has produced a consultation document titled "Measures to strengthen index derivatives framework for increased Investor protection and Market stability". Around 89% of derivative traders lose money, as we discovered at the time. While there were additional revealing details concerning F&O gaming, that was the main story. Now, we have this new document with a newly analysed data and proposed reforms that try to address some of the issues that have been brought to light. 76% of traders under 30 years old lost money on their intraday cash segment trades in FY23, according to data from Sebi. In the index derivatives category of the NSE for FY 2023–24, 92.50 lakh unique people and proprietorship entities traded, resulting in a cumulative trading loss of ₹51,689 cr. Transaction charges are not included in this amount. According to the aforementioned SEBI study, traders who lost money on their trades also incurred transaction costs equal to 23% of their trading losses,...