Risk disclosure with respect to trading by individual traders in Equity Futures & Options Segment

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.... and risk appetite, it is important to empower them with detailed information about the risks associated with trading in derivatives. 2. With a view to facilitating informed decision making by the investors trading in derivatives segment, it has been decided to introduce 'Risk disclosures' with respect to trading in equity Futures & Options (F&O) segment. 3. Accordingly, all stock brokers shall display the 'Risk disclosures' given at Annexure-I on their websites and to all their clients in the manner as specified below: 3.1. Upon login into their trading accounts with brokers, the clients may be prompted to read the 'Risk disclosures' (which may appear as a pop-up window upon login) and shall be allowed to proceed ahead only after ....

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....s. • On an average, loss makers registered net trading loss close to Rs. 50,000. • Over and above the net trading losses incurred, loss makers expended an additional 28% of net trading losses as transaction costs. • Those making net trading profits, incurred between 15% to 50% of such profits as transaction cost. Source: 1. SEBI study dated January 25, 2023 on "Analysis of Profit and Loss of Individual Traders dealing in equity Futures and Options (F&O) Segment", wherein Aggregate Level findings are based on annual Profit/Loss incurred by individual traders in equity F&O during FY 2021-22. Annexure-II: Data Format   A. Equity F&O Segment   Transaction Cost (Rs.) ....

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.... >60   >100L                           Not Available Not Available                   Notes: 1. Client-set: All Individual Clients (which includes HUF and NRIs; excludes Proprietary traders, institutions, partnership firms etc.) 2. Segment: Equity F&O  3. Period: Financial Year  4. Client level realized trading Profit/Loss during the period is considered. 5. With regard to cases where 1 leg of transaction falls under the period, while the oth....

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....;               Period 2 20-30 F 5-10L                             30-40 Others 10-25L                             40-50 Not sepec 25-50L                         &nbsp....