In 2022, Indian traders faced substantial losses of $5.4 billion in options trading, with the average trader losing $120,000. Influencers were actively promoting the dream of becoming millionaires through options trading, such as Elvish Yadav suggesting investing in White Organic Retail Limited, which has since seen a significant drop in stock price from Rs.130 to Rs.9. Similar allegations of pump-and-dump schemes were made against various influencers, including Arshad Warsi, who hyped certain companies on YouTube only to sell off their shares once the price surged. Mohammad Nasiruddin Ansari, known for his YouTube channel "Bap of Chart," was found giving illegal investment advice without a SEBI license, resulting in freezing his accounts and ordering a return of Rs.17 crore earned from investors.

FACTs of Stock Market

The options and futures trading frenzy in India has led to significant market activity, with SEBI reporting that 90% of Indian option traders lose their money. This surge in trading has been fueled by low-interest rates, leading many inexperienced traders to enter the market. However, this surge has also brought about numerous challenges and risks, especially for retail traders.


Options and futures trading can be likened to a game, with many retail traders treating it as a form of gambling rather than investing. The ease of access through new-age brokering apps has further fueled this trend. However, most traders fail to understand the complexities and risks associated with options trading, leading to substantial losses.


Retail traders often make mistakes such as underestimating the value of time in options trading, buying options with low premiums without considering the likelihood of stock price movements, and succumbing to emotional decision-making. These factors contribute to the staggering statistic that 90% of retail traders incur losses in options trading.


The influence of financial influencers, the gamification of trading, and the lack of financial literacy among retail traders exacerbate the situation. SEBI and other regulatory bodies have taken action against illegal practices and emphasized responsible trading. Still, the onus lies on traders to educate themselves, exercise caution, and avoid falling prey to unrealistic promises of quick wealth through options trading.