GAGA Share Market News

[hfe_template id='11223'] [ad_1] Global trading powerhouse Jane Street’s recently made Rs 4.3 crore job offer to an IIT Madras student, reflecting the immense profitability of high-frequency trading firms operating in global financial markets. Meanwhile, this lucrative world contrasts sharply with the reality faced by retail traders, who continue to suffer heavy losses in the cutthroat game of options trading. Often touted as a lucrative opportunity for quick gains, options trading operates as a zero-sum game—profits for some come directly at the expense of others. This dynamic often leaves small retail investors, who are drawn in by the high-risk, high-reward proposition, at a disadvantage. Recent data from the Securities and Exchange Board of India (Sebi) revealed the dire consequences for retail investors venturing into this arena. Sebi’s study revealed that 93% of retail traders in options markets incurred losses between FY22 and FY24, amounting to a staggering Rs 1....

[hfe_template id='11223'] [ad_1] Mumbai: Stock traders must shell out more to punt in equity derivatives - and on fewer weekly contract choices than they now have - after the markets regulator introduced a raft of measures Tuesday to curb retail participation in a segment where at least nine out of ten participants have consistently lost money over the past three years. The Securities and Exchange Board of India (Sebi) Tuesday increased the minimum contract size in index derivatives to ₹15 lakh from the current ₹5 lakh, making options trading costlier. At the same time, it reduced weekly index product offerings to just one per exchange, seeking to curb frenzied speculation among retail traders. "Given the inherent leverage and higher risk in derivatives, this recalibration in minimum contract size, in tune with the growth of the market, would ensure that an inbuilt suitability and appropriateness criteria for participants is maintained as intended," Sebi said i...

[hfe_template id='11223'] [ad_1] Retail traders made a combined net loss of ₹1.81 lakh crore in futures and options trading in the three years to March 2024 and only 7.2% of individual traders made a profit during this period, a study done by markets regulator Securities and Exchange Board of India (Sebi) showed. The number of retail traders has almost doubled in two years from about 5.1 million in FY22 to about 9.6 million in FY24. Although they contributed about 30% in total turnover in FY24, they are a clear majority in number terms, as 99.8% of traders in the derivatives segment are individuals, Sebi said. The regulator has flagged concerns over the chaotic trading in index options and is likely to tighten rules for derivatives trading soon. It has proposed several changes including increasing the minimum contract size in index derivatives, a reduction in weekly index product offerings and making options trading costlier among other things to curb the heightened risk...