Derivatives trading: Why it's opioid of fintellectuals

Ramprasad MuraliTNN
Apr 8, 2024 | 20:42 IST

Derivatives trading has caught on in India. Particularly among the young. But 90% of derivatives traders lose money. Poor financial education & regulation carry much of the blame

It’s well-known that in India, most (90%) derivatives traders lose money. What’s really worrying now is that younger investors (aged 20-40) now make up the lion’s share of derivatives traders (75%) here. Young money is being financially ‘educated’ to treat the stock market like crypto, if not like Monte Carlo.

Shadows or substance?

Derivatives are contracts, whose value depends on something else – which could range from stocks and bonds to commodities, indices, real estate, or even weather.
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