Retail fuels F&O trade to record high in 7 mths

F&O interest persists in FY24 despite massive losses faced by individuals

- Ram Sahgal

Retail investors’ growing fancy for weekly options trading has reached staggering proportions with the whole of last year’s futures and options (F&O) volumes set to be surpassed in less than seven months of the current financial year.

The interest in FY24 persists despite massive losses by individuals, and subsequent warnings by the regulator that F&O trading causes nine out of 10 participants to lose their shirts. The market rally since March and zero day options — availability of options that expire each day of week — have been key attractions.

Total number of contacts traded on the National Stock Exchange’s (NSE) equity derivatives segment is 41.41 billion in just over six months of FY24 , which is within striking distance of the record 41.76 billion contracts traded in the whole of FY23.