July 2026: SEBI to Publish New Study on Retail Losses in Option Trading
In India, many people trade Nifty, Bank Nifty and stock options to make money. Some earn profits, but a large number of traders lose money. SEBI has been studying these losses to understand how individual traders are performing in the market.
In June 2026, SEBI announced that it would release a new study on retail trading losses in July. The report was expected to show how much money individual traders had made or lost during FY26.
The study was finally released on August 20, 2026. It showed that around 88% of individual F&O traders lost money. Their total losses reached ₹91,685 crore, and around 92% of these losses came from options trading. The total loss was lower than the previous year, but making money from option trading remains difficult for most individual traders.
What Changed After SEBI's New F&O Rules?
SEBI introduced new rules for the F&O market to reduce the risks faced by retail traders. These included bigger contract sizes and fewer weekly expiry contracts. After these changes, traders had fewer weekly expiry options available, and some trades required more money than before.
The study does not clearly show whether the lower losses were due to SEBI's new rules or because people were trading less. Both are important when looking at the results.
Did Fewer People Trade in FY26?
The SEBI study showed that fewer individual traders participated in the F&O market in FY26 compared with FY25. The total money lost by these traders also came down. But there was still a problem. Around 88% of individual traders lost money during the year, which means most people were still unable to make a profit.
How Do Trading Costs Affect Option Traders?
When people trade options, they have to pay brokerage, taxes and other charges. These costs are part of every trade, whether the trader makes a profit or a loss.
For someone who trades many times a day, these charges can add up. A trader may make money from buying and selling options, but the final profit can be much lower after paying all the charges. If a trader loses money, these charges increase the loss further.
Traders should always check how much money they actually made or lost after paying all charges. This gives them a clear picture of their trading results.
Why Do Option Traders Lose Money?
Many people start option trading hoping to make money in a short time. But the market does not always move as they expect, and even a small change in price can lead to a loss.
Some traders buy options and wait for the price to recover when the trade goes wrong. But as expiry gets closer, the option can lose value even if the market does not move much.
Another common mistake is trying to recover losses quickly. A trader may take more trades or use more money after losing. Instead of recovering the loss, this can make it even bigger.
There is no single reason why every trader loses money. However, understanding these risks and knowing when to stop trading can help traders avoid making their losses worse.
What Can Option Traders Learn From This Study?
The study shows that most individual traders are losing money in the F&O market. Anyone planning to trade options should understand this risk before starting.
It is important to decide how much money you are willing to lose on a trade. Using too much money in one trade can lead to a big loss if the market moves against you. If a trade goes wrong, trying to recover the loss immediately can make things worse.
Sometimes, it is better to accept a small loss rather than risk losing more money. Option trading research can help traders understand the market and its risks. Traders should focus on controlling their losses and protecting their money instead of expecting profits every day.
Final Thoughts
SEBI's new study shows that most individual traders are still losing money in the F&O market. Even though total losses have reduced, many traders are still struggling to make a profit.
Traders should take their time to learn, avoid unnecessary trades and be careful with their money. Option trading is not just about making profits. It is also about knowing how to protect your money when things go wrong.
Option trading is not just about making profits. Understand the risks, avoid unnecessary trades, accept small losses when needed, and focus on protecting your money.
