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
"Focus on the challenge of each customer"
SHASHANK KUMAR MD & CO-FOUNDER I RAZORPAY Razorpay is India's first full-stack financial solutions company
PEDAL ON THE FUTURE
THE MG WINDSOR EV, WITH ITS FUTURISTIC AND MINIMALIST DESIGN, COMBINES THE BEST OF BOTH WORLDS-COMFORT AND TECHNOLOGY
BREATHE EASY
Whether you're battling allergies, looking to remove pollutants, or simply want to breathe easier, the right air purifier can make a difference
The Taste of India in a Glass
FROM ROYAL LIQUEURS TO DISTILLED MAHUA, INDIAN HERITAGE ALCOHOLIC BEVERAGES ARE HAVING THEIR DAY IN THE SUN
LOOK BEFORE YOU LEAP
IN 2025, INVESTORS WILL NEED TO FACTOR IN VOLATILITY ACROSS ASSET CLASSES
MISSING ADVISORS
INDIA HAS JUST ONE INVESTMENT ADVISOR FOR NEARLY EVERY 200,000 INVESTORS. AT A TIME WHEN RETAIL PARTICIPATION IN THE STOCK MARKETS IS BOOMING, THIS ASSUMES SIGNIFICANCE
TURNING A CORNER
SHARED ELECTRIC MOBILITY START-UP YULU'S SHIFT TO SERVICING THE QUICK COMMERCE SECTOR IS HELPING IT GROW FAST. IT IS NOW FOCUSSING ON IMPROVING ROAD SAFETY FEATURES AS IT TURNS EBITDA POSITIVE
REALITY CHECK
INDIAN STOCK MARKETS PLUNGED BEGINNING OCTOBER FOR A HOST OF REASONS, INCLUDING A FALL IN FII OWNERSHIP. HOW DEEP WILL THE CORRECTION BE?
TRUMP'S TRADE TANGO
The return of Donald Trump as the 47th President of the US has put the global economy on edge. India, too, is unlikely to remain unaffected. How will policymakers meet this latest challenge?
"The essence of the Trump administration will be transactional”
Global investor, analyst, and best-selling author Ruchir Sharma decodes why Donald Trump won the elections, what India should do, the risks, and more
