New iOS in Markets – Indian Options Speculators

New iOS in Markets - Indian Options Speculators.

There has been a huge surge in Retail and Proprietary trading in Options and more specifically in Index Options.

The Data & Charts below are just Crazy and getting crazier.

1) Retail Participation went through the roof in 2021

  • Some Moderation now in 2022-2023
  • Retail in Cash Market From 3 cr in Jan 20 to 11.7 cr in 2021.
  • Retail at 3.2 cr participants  March 23.
  • 3x jump in all participation from Jan 20 !!


2) Everyone is an Option Trader

  • FIIs are just 9.5% of Index Options Premium Turnover !!! From 21% in Fy20.
  • 45% is Domestic Prop ( Broker trading on its own behalf )
  • 35% is Retail.
  • Retail + pro = 80%
  • Retail is almost 4x of FIIs.
  • Btw FIIs own 20% of India.


3) Pro are propping up the Trading Volumes in Equity Derivatives .

  • On a notional turnover, 53% of the Volumes is PRO accounts.
  • Brokers are now Traders or Traders have turned Brokers ?
  • FIIS are just 7.4%
  • Retail at 27%


4) The Indian Options Speculator is an Indexer

  • For all the talk about Index Funds & ETFs the data suggests Retail is all in on Index Futures instead.
  • 31.7% of Index Futures is Retail and 34% is PRO
  • FIIs at 11.8%


5) Retail is shifting from Futures to Options

  • StockFutures sees a major cut in Retail participation.
  • From 31% of Volumes in 2018 to just 15.6% in 2023.
  • FIIs continue to be at 23-25%
  • DIIs at 8.5% thanks to the ArbitrageFunds and TaxBenefit.


6) Stock Options is all about the PRO and Retail

  • 56% of Volumes by PRO and 31% by Retail.
  • FIIs are just 3.1 % .
  • Repeating, FIIs are just 3.1% of Stock Options ( Premium Turnover )


7) The Machines are fighting it out.

  • 51.5% of Volumes of Equity Derivatives and 33% of Cash Market is via Co-Location.
  • 17% of trades via a Mobile in cash Market. It peaked at 25% in 2021 !!


8) Capital Market still has FIIs DIIs and Retail slugging it out.

  • PRO is 27%
  • Retail is 36.5% from a peak of 45% in FY21.
  • FIIs at 15%


9) Couple of odd ones

  • SURAT just beat the Rest of India in terms of Cash turnover of Individuals in March 23 with 6.3% of Volumes !!!
  • Mumbai continues to be the largest
  • Equity Market AUM crosses Debt Market in Mutual Funds


10) Retail participation is increasing in a big way. More in Option Selling 

  • Mind you Leverage is the toughest way to make money and the easiest to Lose it All.
  • I just hope a lot of Retail does not have to learn this lesson in a tough way with Volatility going berserk.


A lot of things are not in your Control.

Outages can be everywhere.

  • Broker
  • Exchange
  • Bank
  • War

A lot can create volatility. Remember a 15 min Lower circuit in 2012 due to a Freak order by a Broker.

Control your Size and Leverage. Be conservative.



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