- Indian retail F&O traders lost $40.36B from FY22–FY26, with losses recorded every year.
- Crypto shows a split picture with 50.91% spot profitability, but only 18.41% of futures traders win.
- Regulatory curbs cut participation by 20%, but average losses rose as activity shifted offshore.
According to Securities and Exchange Board of India (SEBI) research, Indian retail Futures & Options (F&O) traders recorded net losses in every financial year from FY22 to FY26. They accumulated losses of $40.36 billion (₹3.85 lakh crore), based on data from the top 15 brokers covering around 90% of retail/individual investors.
This equates to approximately 9 of 10 (90-91%) individual traders losing money in a typical year. The losses peaked in FY25, but declined by nearly 18% in FY26 due to a reduction in participation of nearly 20% after SEBI measures like higher contract sizes, position limits, and expiry rationalization. But the average loss per trader left still slightly increased.
Crypto Shows 50.91% Profitability, but Only 18.41% of Futures Traders Win
Trader participation surged from 4.274 million (42.74 lakh) in FY22 to 9.81 million (98.1 lakh) in FY25 before slightly declining, with notional turnover peaking at $2.232 trillion (₹213 lakh crore) and average losses per trader ranging between $995 and $1,226 (₹95,000 and ₹1.17 lakh).
Based on KoinX’s report, which analyzed over 670,000 Indian crypto users in FY 2024–25, around 50.91% of users were profitable, while 49.09% reported losses. However, profits were heavily concentrated, with the top 5% accounting for nearly 96% of total gains.
The picture worsens in derivatives. Only 18.41% of KoinX futures traders were profitable, with total losses exceeding gains ($287M vs $261M). Broader industry data suggests that 70–80% of crypto derivatives participants incur losses, mirroring trends seen in India’s equity F&O market.
Moreover, industry data from other Indian crypto platforms show that about 70-80% of the participants in the crypto derivatives and futures segment are incurring losses. These losses are suffered primarily by retail investors, who make up approximately 70% of futures activity. This pattern mirrors KoinX’s equity F&O, but in a largely unregulated or lightly supervised market.
What’s Next for Indian Retail Crypto and F&O Traders?
In both markets, the structural advantage lies with the more well-resourced and institutional market participants. For retail traders who remain active, they will require better risk management, a healthy perception of the likelihood, and an awareness of changing disclosure and taxation requirements.
Related: Indian Crypto Trading Shifted Offshore in FY25 Amid Tax Pressures
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