Loss in Option Trading More than Dream11 | Gamification of Indian Equities: Axis MF Report
98.4 هزار بار بازدید -
9 ماه پیش
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Option trading is now the
Option trading is now the favorite of traders these days. Reason, the greed of making bucks quickly, a wish to get rich overnight etc.
But a recent report 'The Gamification of Indian Equities' by Axis Mutual Fund has opened a can of worms.
Report corroborated what we had already said in a video a few months back. Findings in reports are startling and points to a stark reality that the option trading segment is totally gamed.
Most retail option traders, particularly buyers, are not so sophisticated as option sellers and end up in huge losses. In short they are mere speculators who just bet like a gambler.
As per report the probability of making a profit in fantasy sport like Dream11 is greater than making money in option trading.
There is option contract expiry on each day of week. That is a lure for option traders who trade expiries. They pull bets like hero zero trade and that too in heavy quantities.
Recently due to some freak trades, retail option traders had lost a big chunk of their capital. Recent changes in lot size and expiries have made the market totally unpredictable.
According to a report , traders handle option trading like a video game. The apps they use to trade have an interface that gives a look and feel of a video game aap.
Option trading turnover has seen a spike in average daily turnover in the last 4 years. Because the cost of brokerage has come down significantly. Thanks to discount brokers.
Also on a weekly expiry a trader gets a leverage upto to 500x. That means a rupee 2000 ATM option contract gives a trader an exposure equivalent to rupee 10 lakh while on monthly expiry it is a mere 54X.
Recently Bank Nifty and Bankex have reduced their lot sizes in the option trading segment. That means a trader with low capital can opt for option buying.
The greed of minting money is taking its toll. In 2022 SEBI released the report on FnO trading losses and profits made by retail traders.
As per that report 89% option traders were in loss and they collectively lost ₹45000 crore. Same report says 11% traders are in profit and they gained ₹6900 crores.
The video is not meant to discourage or demotivate people from doing option trading but a reminder that option trading is a tough arena.
Traders should observe due caution before opting for option trading. Traders should learn proper technique instead of getting swayed by day dreams of getting rich overnight.
The video is NOT meant to bring any sort of horror or fear to the existing or upcoming option traders. But a reality check.
An option trader can get involved into this format and the way they way, the money they want with. But, it's better to know some of the aspects that directly or indirectly impact their behavior and what exactly can they do to be aware of the pitfalls of human nature that eventually put them into the 89% loss making option traders in India.
Watch this video to be aware of the emotional and irrational behavior shown by the traders and try to learn from their mistakes, instead of doing the same ones yourself.
Do watch the complete video to know more about the findings of the report.
Download our app Stock Pathshala to learn the Stock Market for free:
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00:00 Is Options Trading Same as Dream11
00:36 Options Trading in Last.3 Years
01:34 India Vs World in Options Trading
02:00 Why is Options Trading Attractive?
03:54 Speculation Vs Hedging in Options
04:25 Why Options is Like Dream11 Game?
06:52 Learnings for an Options Trader
But a recent report 'The Gamification of Indian Equities' by Axis Mutual Fund has opened a can of worms.
Report corroborated what we had already said in a video a few months back. Findings in reports are startling and points to a stark reality that the option trading segment is totally gamed.
Most retail option traders, particularly buyers, are not so sophisticated as option sellers and end up in huge losses. In short they are mere speculators who just bet like a gambler.
As per report the probability of making a profit in fantasy sport like Dream11 is greater than making money in option trading.
There is option contract expiry on each day of week. That is a lure for option traders who trade expiries. They pull bets like hero zero trade and that too in heavy quantities.
Recently due to some freak trades, retail option traders had lost a big chunk of their capital. Recent changes in lot size and expiries have made the market totally unpredictable.
According to a report , traders handle option trading like a video game. The apps they use to trade have an interface that gives a look and feel of a video game aap.
Option trading turnover has seen a spike in average daily turnover in the last 4 years. Because the cost of brokerage has come down significantly. Thanks to discount brokers.
Also on a weekly expiry a trader gets a leverage upto to 500x. That means a rupee 2000 ATM option contract gives a trader an exposure equivalent to rupee 10 lakh while on monthly expiry it is a mere 54X.
Recently Bank Nifty and Bankex have reduced their lot sizes in the option trading segment. That means a trader with low capital can opt for option buying.
The greed of minting money is taking its toll. In 2022 SEBI released the report on FnO trading losses and profits made by retail traders.
As per that report 89% option traders were in loss and they collectively lost ₹45000 crore. Same report says 11% traders are in profit and they gained ₹6900 crores.
The video is not meant to discourage or demotivate people from doing option trading but a reminder that option trading is a tough arena.
Traders should observe due caution before opting for option trading. Traders should learn proper technique instead of getting swayed by day dreams of getting rich overnight.
The video is NOT meant to bring any sort of horror or fear to the existing or upcoming option traders. But a reality check.
An option trader can get involved into this format and the way they way, the money they want with. But, it's better to know some of the aspects that directly or indirectly impact their behavior and what exactly can they do to be aware of the pitfalls of human nature that eventually put them into the 89% loss making option traders in India.
Watch this video to be aware of the emotional and irrational behavior shown by the traders and try to learn from their mistakes, instead of doing the same ones yourself.
Do watch the complete video to know more about the findings of the report.
Download our app Stock Pathshala to learn the Stock Market for free:
https://bit.ly/3rg2h0h
Join the Fraud Free Awareness Program NOW: https://aseemjuneja.in/fraud-free-awa...
Follow us on Social Media Handles:
Instagram - https://bit.ly/adb_insta
Twitter- https://bit.ly/adb_twt
LinkedIn- https://bit.ly/adb_linkdin
🎧 Listen to Our Podcast on Spotify:
https://spoti.fi/3JnpmSQ
🎥Subscribe to our Aseem Juneja Channel:
@aseemjuneja
🎥Subscribe to our Stock Market Learning Channel:
@stockpathshalaofficial
🎥Subscribe to our Vlog Channel
ADB Vlog - https://bit.ly/adb_vlog
✅Visit Our Website
https://www.adigitalblogger.com/
✅Visit our Hindi Website
https://hindi.adigitalblogger.com
00:00 Is Options Trading Same as Dream11
00:36 Options Trading in Last.3 Years
01:34 India Vs World in Options Trading
02:00 Why is Options Trading Attractive?
03:54 Speculation Vs Hedging in Options
04:25 Why Options is Like Dream11 Game?
06:52 Learnings for an Options Trader
9 ماه پیش
در تاریخ 1402/07/29 منتشر شده
است.
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