SEBI-registered investment adviser Abhishek Kumar explains why F&O can serve a legitimate purpose as a hedging tool, who should be cautious about trading derivatives, and what basic risk-management rules retail investors can consider.
Most F&O traders lose money; should retail investors be flocking there?
Investment adviser Abhishek Kumar explains how leverage, time decay, expiry-day trading, transaction costs and trading behaviour can amplify F&O losses
SEBI’s latest study shows that around 88% of individual traders in equity derivatives lost money in FY26, with combined net losses of ₹91,685 crore after transaction costs.
But why do so many retail investors lose money in futures and options? In this interview, SEBI-registered investment adviser Abhishek Kumar explains how leverage, time decay, expiry-day trading, transaction costs and trading behaviour can amplify losses.
He also explains why F&O can serve a legitimate purpose as a hedging tool, who should be cautious about trading derivatives, and what basic risk-management rules retail investors can consider.
Watch the full conversation to understand the risks before trading F&O.
