Published by Priyanka Deshpande
Byline Yash Jain
CNBC-TV18.com
Published July 23, 2024
SEBI, last year, created headlines with its study on the Futures and Options (F&O) market where it found that 9 out of 10 individual traders in the F&O incurred losses.
The market regulator has come out with a new study on individual equity cash market traders and the revelations are quite startling. here are the top findings of SEBI’s study on intraday equity cash market traders:
7 out of 10 of individual intraday equity cash market traders or 71% incurred losses in FY23
Proportion of loss-makers increased to 80% for traders with very frequent trading (More than 500 trades/year)
Percentage of loss-makers amongst young traders (under 30 years of age) was higher at 76% In FY23
1 out of 3 traders who trade in equity cash market, trade intraday
Intraday traders in equity cash segment increased over 300% in FY23 as against FY19
Share of young traders (under 30 years of age) grew to 48% in FY23 as against 18% in FY19
Average number of trades by loss-making traders was higher than profit-making traders
Loss makers spent an additional 57% of their trading losses as trading costs in FY 2023 whereas profit makers spent 19% of their trading profits as trading costs in FY 2023
According to SEBI, its study on equity cash market traders is expected to enhance awareness among individual traders about the risks involved in intraday trading in equity cash segment.