SURGING F&O TRADES
• As many as 122 million demat accounts have been opened since April 2020, of a total of 158 million till May 2024
• The younger generation, with access to apps and easy research, has appetite for risk and wants to get rich quickly
• It helps that discount brokerages offer zero brokerage fees and lending facilities
• Influencers sell options strategies via YouTube, WhatsApp, and Telegram, offering different models, such as subscription-based
• Options offer lower entry costs and higher leverage compared to futures and cash market trading, and brokers are marketing such products to clients
• F&O offers a hedging tool for sophisticated investors
• Exchanges have started pushing volumes by offering weekly options contracts, with expiries every day
• Entry of algorithmic or high-frequency trading is driving volumes
IT IS CALLED fatal attraction. A bug is attracted to a light source even though it could be the death of it. Among humans, it is often the thrill of doing something dangerous. For instance, some people indulge in death-defying stunts; some undertake perilous expeditions; some have addictions that are injurious to health; and some gamble away their financial future.
What else explains the fact that there has been no let-up in the popularity of Futures & Options (F&O) trading in India despite investors being met with a blunt warning when they log into their trading accounts? The warning goes: "90% of people are making losses in Futures & Options trading. The average loss is ₹50,000 per client." It is reminiscent of the health advisories on cigarette packs. And like cigarettes, F&O trading can be addictive, when investors, like smokers, disregard the warning, which could lead to financial ruin.
This story is from the {{IssueName}} edition of {{MagazineName}}.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber ? Sign In
This story is from the {{IssueName}} edition of {{MagazineName}}.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber? Sign In
The EV Craze
The country’s growing luxury car market is seeing a shift with environmentally-conscious consumers betting on electric vehicles as a sustainable travel option. Though just 6%, the share of EVs in the luxury segment is rising rapidly
The Storage Boom
Data centres are being built at a frenetic pace in india as companies scramble to meet the ballooning demand from mobile phone users and firms adopting al. Can the country’s energy infrastructure keep up?
India Beckons
Owing to rising incomes in India and overall wealth expansion, luxury brands are wooing the country like never before
The Pearls of The Sea
Caviar, that rare food, is considered the epitome of fine dining. Here is everything that you need to know about it
66.Brand persona should define the core"
I’d say this was a strategic pivot. We had an iconic brand, but had, over time, evolved into diversified lines of businesses that could no longer be represented within the confines of our ‘name’.
Unwind in Style
Here is acomprehensive list of top tech picks that help you unwind by blending perfection in performance with luxury
A Lifelong Affair with Inspiration
In my art journey, the diversity of my acquisitions mirrored the expanding horizons of my understanding of art
Make it Bubbly
Champagne is much more than just a symbol of celebration and success. Know about its nuances beyond the bubbles
Palatial Splendour
Buoyed by renewed demand, sales of the glitzy mansions of the ultra-rich are surging like never before. Real estate majors are looking to capitalise on this by launching luxury offerings in record numbers
Of Beaches and Cream
GianChand Single Malt Whisky
