Retail investors' participation in F&O trading surges, say experts

With growing participation of retail traders in the futures & options (F&O) trading, experts on Sunday said the prospects of quick profits and speculative nature of the instrument has attracted investors to this segment. They suggested investors to approach F&O trading with thorough knowledge and careful risk management. Finance minister Nirmala Sitharaman and chief economic advisor V Anantha Nageswaran have recently flagged the growing risk of F&O trading for retail investors. In November 2023, Sebi chief Madhabi Puri Buch also cautioned investors against heavy bets on F&O. The caution was likely aimed at encouraging a more informed and prudent approach to trading in these products, helping to safeguard investors' financial well-being while allowing them to take advantage of market opportunities. Despite this, F&O trading continues to grow in popularity, driven by the potential for profit and the rising trading volumes. The segment's popularity is evident from
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