Why 90% of Investors Make Losses in Derivatives
The derivatives market has always fascinated investors with its potential for high returns, fast trades, and low capital requirements. But behind the thrill lies a harsh reality—nearly 90% of individual investors lose money in derivatives trading. This isn’t due to bad luck or occasional poor choices. It’s a pattern driven by a range of factors: psychological, technical, and structural. In this blog, we’ll break down the reasons why most retail traders struggle in derivatives markets, using relatable examples from the Indian financial ecosystem, and offer insights into how you can avoid these common traps.