23/08/2026
A little more clarity on yesterday’s reel 👇
SEBI data should not be interpreted by looking at just one number.
📌 Option Buyers: The frequency of losses is higher, but the average loss per trader may appear smaller because option buying requires relatively less capital and the maximum loss on a trade is limited to the premium paid.
📌 Option Sellers: Option selling requires significantly higher capital and margin. Therefore, the average loss amount of losing sellers can naturally appear much larger. And yes, naked/unhedged option selling without proper risk management can lead to very large losses.
But simply comparing ₹1.28 lakh vs ₹51.70 lakh does not tell the complete story. Capital deployed, number of participants, strategy structure and risk management also matter.
Another interesting point from the data 👇
In FY26, Proprietary Traders recorded ₹44,483 crore in gross profits — the highest among the categories shown. Professional trading desks heavily rely on systematic/algo-based ex*****on, hedging and disciplined risk management.
The Bottom Line:
Whether you are an Option Buyer or Option Seller, both can lose money without proper knowledge and risk management.
In Option Selling especially, hedging, position sizing and strict risk management are essential.
📊 Data Source: SEBI — Equity Derivatives Study, FY25–FY26
⚠️ Disclaimer: This content is for educational purposes only and is not investment advice. F&O trading involves substantial risk. We are not SEBI registered. Please consult your financial advisor.
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