Rapid Rise In Derivatives Trading Could Pose Challenges For Investors: RBI
NDTV
The equity derivatives segment has been witnessing growing participation from retail investors in recent years. It has gone up by 42.8 per cent from 65 lakh during 2022-23 to 95.7 lakh during 2023-24.
The rapid rise in Futures and Options (F&O) trade volumes in recent years could pose several challenges as retail investors not following proper risk management could be impacted by sudden movements in markets, said a Reserve Bank report.
The equity derivatives segment has been witnessing growing participation from retail investors in recent years. It has gone up by 42.8 per cent from 65 lakh during 2022-23 to 95.7 lakh during 2023-24.
While trading volumes in derivatives segment has seen exponential growth over the years in notional terms, the trading volumes when measured by the premium turnover has witnessed a linear growth pattern, said the RBI's bi-annual Financial Stability Report (FSR).