By laksh5382 
Even the regulator of the market took a group of measures to prevent retail frenzy in option trading, it has been found that the NSE’s only futures and options (F&O) sections are less than the fifth of those who used to trade in the previous financial year.
Data implies that an important part of retail investors participating in the F&O segment is the experience of dealing in the equity cash segment. And, a small bunch trading can only be new entry to earn F&O quick profit.
About 2.1 million are completely traded out of a total of 10.8 million individuals in the F&O segment, who participated in derivative trading through February 2025 in 12 months, shows NSE data. About 8.7 million participating in the cash segment also traded on the derivative segment, to 10.8 million counting of the total derivatives.
To ensure this, only the number of individuals trading F&O increased from 0.5 million in the year to 12 months to 2.1 million in February 2025.
Despite this bounce, market stakeholders said, they are a small ratio of both cash and F&O segment traders, and can be new to new people entering the last two to three years.
“Data implies that most of the trading on F&O have trading experience in stock,” said Alok Churiwala, managing director of the five -decade -old Churiwala Securities.
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Digital Revenue, Sudhir Jha, EVP and Head, at 5paisa Capital, said, “Only F&O Trading are mainly new who entered the segment to make a quick deer from option trading, especially in the first half of the year when markets raised a record high level.”
Data also shows that 29.1 million persons traded the cash segment in the year through February 2025, while both cash and derivatives traded 8.7 million, taking the total cash section to 37.8 million and 10.8 million in the F&O segment.
The NSE, which had a three-month rolling market share of 83% in equity options-has been defined as individual domestic investors, non-resident Indians, the only ownership firms and individuals in the form of Hindu undivided families (YeduF), who have traded at least once a year.
The number of total investors registered with NSE crossed the 11 crore mark in February. Other customer categories include corporates, domestic institutional investors, foreign investors and proprietary traders.
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Concerned about retail mania for weekly option trading on expiry Day, the Securities and Exchange Board of India (SEBI) in October last year did the weekly weekly expiry last year up to an exchange per week, four expiry by NSE and the first two expiry by BSE; Many sizes of Nifty and Sensx Contracts increased 15-20 lakhs from 5–10 lakhs; And among others, margins increased to trade on ending day.
Due to the joint effect of these measures, the average daily premium turnover of index options on NSE declined by 18%. 44,427 crore from March In September last year, 54,127 crore when Nifty hit a record high of 26,277.35.
5paise Capital’s Jha said, “Since the Curb was applied, F&O has some rationality in the context of the number of traders every month.” “Furthering number, global and domestic phenomena such as business wars, results and liquidity will depend back on the market response at home.”
Read more SEBI’s F&O followup: Increased risk matrix to curb the fears of manipulation