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Retail traders lost ₹91,685 crore in India’s equity F&O market in FY26—but who made the money?
In this video, QAlpha breaks down SEBI’s latest equity-derivatives studies to reveal:
• Why 87.7% of individual traders lost money
• ₹44,483 crore in gross profits earned by proprietary traders
• ₹13,896 crore in gross profits earned by FPIs
• The 99% algo-profit connection
• Option buyers versus option sellers
• Why losing option sellers averaged losses of ₹51.71 lakh
• How ₹25,000 crore was spent on transaction costs
• Why 97% of index-options turnover occurred within one week of expiry
• Whether experience actually improves a trader’s chances
The data reveals a market where retail participants compete against sophisticated proprietary firms, institutional investors and algorithm-driven entities with vastly different capital, technology, execution and risk-management systems.
Does this mean retail traders cannot succeed? No. But understanding who you are competing against—and how the odds are structured—is essential before trading derivatives.
Watch until the end for the most important lessons from SEBI’s findings.
Sources:
SEBI press release:
https://www.sebi.gov.in/sebi_data/attachdocs/aug-2026/1787236407005.pdf
SEBI profitability study:
https://www.sebi.gov.in/sebi_data/attachdocs/aug-2026/1787233506209.pdf
SEBI trading-behaviour study:
https://www.sebi.gov.in/sebi_data/attachdocs/aug-2026/1787233601328.pdf
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Disclaimer: This video is for educational and informational purposes only. It is not investment advice or a recommendation to trade in futures and options. Derivatives involve substantial risk and may not be suitable for every investor. Please consult a SEBI-registered investment adviser before making financial decisions.
#SEBI #FuturesAndOptions #FnOTrading #OptionTrading #AlgoTrading #RetailTraders #StockMarketIndia #NiftyOptions #TradingLoss #QAlpha 
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