Derivatives Trading: Is The Risk Worth The Gain?

Brief Overview of Derivatives

What is the reason behind the rapid rise in futures and options trading? Is it only the lure of quick profits or is the trimming of brokerage a key part? Bhavya Rathod examines the various pros and cons of futures and options trading and probes the reasons why it is so risky for small-time traders 

A rapid surge in stock options trading in India has ignited enthusiasm among the country’s retail traders while raising concerns among regulators about the potential risks associated with such speculative fervour. The sudden and substantial growth in the trading of stock options has captured the attention of market participants, creating a dynamic landscape that is generating both excitement and caution. Regulators are closely monitoring this trend, recognising the need to balance the thrill of increased retail participation with the imperative to safeguard against potential risks and market volatility.