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Risk disclosure on derivatives.

A summary of the risks involved in trading equity derivatives (F&O), based on SEBI's study of individual trader behaviour. Read carefully before opting in to derivatives trading.

Mandatory underSEBI Circular, 19-May-2023
Source dataSEBI study, Jan 2023 · FY 2021–22
Last reviewed01-May-2026
Mandatory disclosure · SEBI Circular SEBI/HO/MIRSD/MIRSD-PoD-1/P/CIR/2023/73

The following text is reproduced verbatim from Annexure-I of SEBI Circular dated 19 May 2023, mandating risk disclosures with respect to trading by individual traders in the Equity Futures & Options segment.

  1. 9 out of 10 individual traders in equity Futures and Options Segment, incurred net losses.
  2. On an average, loss makers registered net trading loss close to ₹ 50,000.
  3. Over and above the net trading losses incurred, loss makers expended an additional 28% of net trading losses as transaction costs.
  4. Those making net trading profits, incurred between 15% to 50% of such profits as transaction cost.

Source: SEBI study dated 25 January 2023 — "Analysis of Profit and Loss of Individual Traders dealing in Equity F&O Segment", with aggregate-level findings based on FY 2021–22 data. Read the full study →

01

What this means for you as a trader.

Equity derivatives are leveraged instruments. Margin requirements allow you to take positions far larger than the cash deposited with the broker, which means losses can also be far larger than the capital you have committed.

Before opting in to F&O trading, please ensure that:

  • You understand the contract specifications, margin requirements, and settlement mechanics for each instrument you intend to trade.
  • You have read and acknowledged the Investor Charter, the Most Important Terms & Conditions (MITC), and the standard Rights & Obligations document.
  • Your trading capital is risk capital — money whose loss would not affect your essential financial obligations.
  • You have evaluated whether trading is consistent with your stated investment objectives, risk appetite, and time horizon.

DealDepot Brokerage Pvt Ltd holds SEBI Stockbroker registration (INZ000257137) and an NSDL Depository Participant registration (IN-DP-663-2022). We do not hold a Research Analyst (RA) or Investment Adviser (IA) registration, and do not provide buy/sell recommendations or investment advice.

02

Further reading.

Stockbrokers are required to display the SEBI disclosure prominently on their websites, in account-opening kits, and in advertising material relating to derivative trading. The complete SEBI study, including methodology, sample, and detailed findings beyond the four points reproduced above, is available on SEBI's official website along with the underlying circular.

This page reproduces a SEBI-mandated disclosure and links to the underlying study and circular. It must not be construed as investment advice or research. For any decision to trade in derivatives, please consult a qualified Investment Adviser.

Risk disclosure on derivatives

9 out of 10 individual traders in equity F&O segment incurred net losses. On average, loss-makers registered net trading loss close to ₹50,000. Over and above the trading losses, loss-makers spent an additional 28% of the loss as transaction cost. Even those making net trading profits incurred between 15% and 50% of such profits as transaction costs.

Source: SEBI study dated 25-Jan-2023 — Analysis of Profit and Loss of Individual Traders in EQ/F&O Segment, FY 2021-22.