What SEBI studied
In September 2024 the Securities and Exchange Board of India (SEBI) published a study of individual traders in the equity futures and options (F&O) segment across three financial years, FY22 to FY24. It covered more than one crore individual traders.
| Finding | As reported by SEBI |
|---|---|
| Individual traders who made a net loss | 93% |
| Average loss per loss-making trader, over three years | About ₹2 lakh, including transaction costs |
| Combined net loss of individual traders | More than ₹1.8 lakh crore |
An earlier SEBI study, covering FY22 alone, found that 9 out of 10 individual F&O traders lost money. That finding is why stockbrokers now show a risk disclosure before a client trades derivatives.
Check the source
Why most traders lose
The studies describe outcomes, not causes, but the usual reasons are well understood:
- Costs add up. Brokerage, exchange charges, taxes and slippage are paid on every trade, win or lose. A strategy that breaks even before costs loses money after them.
- Time works against option buyers. An option's time value shrinks every day until expiry, so a buyer needs the price to move far enough, and soon enough, to overcome that decay.
- Position sizes are too large. Derivatives let a small account take a large position. One bad day can undo weeks of careful trading.
- Losses are not cut. Without a pre-set exit, a small loss becomes a large one while the trader waits for the market to come back.
- Trading becomes emotional. Overtrading after a win and 'revenge trading' after a loss are both common, and both are expensive.
What a simulator can and cannot teach
Practising on a simulator removes the cost of mistakes, which is exactly what makes it a good place to build habits: sizing every trade, respecting a daily loss limit, keeping a journal and reviewing it.
It cannot reproduce everything. Simulated fills can be kinder than real ones, and a virtual balance does not carry the same emotional weight as your own money. Passing an assessment is evidence that you can follow a process under rules. It is not a promise that you will make money in live markets.
How to use IndieFunded responsibly
- 1Open the free demo first and learn the platform before you pay for anything.
- 2Read the rulebook and the drawdown and position sizing guides in this library.
- 3Treat the programme fee as the cost of a course. Only pay a fee you are comfortable not getting back.
- 4Start with the programme that gives you the most room for error. For most people that is 2-Step.
- 5Never treat performance rewards as income you can plan around. Many participants do not pass.