Although derivatives have their uses, they should only be traded by individuals who completely grasp the risks involved and have the ability to control them.
Those without this comprehension or inclination for risk should steer clear of trading derivatives, he warned.
Despite this, F&O trading continues to grow in popularity, driven by the potential for profit and the rising trading volume.
The segment's popularity is evident from its massive growth, with the monthly turnover in the F&O segment reaching Rs 8,740 lakh crore in March, as compared with Rs 217 lakh crore in March 2019.
At the same time, the average daily turnover in the equity cash segment was Rs 1 lakh crore, while the F&O segment saw an average daily turnover of about Rs 330 lakh crore.
Although derivatives have their uses, they should only be traded by individuals who completely grasp the risks involved and have the ability to control them. Those without this comprehension or inclination for risk should steer clear of trading derivatives, he warned.
Despite this, F&O trading continues to grow in popularity, driven by the potential for profit and the rising trading volume. The segment's popularity is evident from its massive growth, with the monthly turnover in the F&O segment reaching Rs 8,740 lakh crore in March, as compared with Rs 217 lakh crore in March 2019. At the same time, the average daily turnover in the equity cash segment was Rs 1 lakh crore, while the F&O segment saw an average daily turnover of about Rs 330 lakh crore.
