Sebi's latest proposal on F&O trading won't change options volumes, but reduce futures volumes

  Sebi's latest  proposal on F&O trading won't change options volumes, but reduce futures volumes Zerodha chief executive office...

 

Sebi's latest proposal on F&O trading won't change options volumes, but reduce futures volumes Zerodha chief executive officer Nithin Kamath on July 30 said market regulator Sebi’s new proposed changes for futures and options trading will not impact the options volumes, It will rather have a negative impact on the futures volumes. “The suggested changes, even with the STT increase, won’t really change options volumes. But on the flipside, they will reduce futures volumes,” Kamath said in a post on X. The online trading platform’s chief said futures traders are more profitable than options traders. “From what I’ve seen at Zerodha, futures traders have higher odds of making money than option buyers. On a gross basis, futures traders are profitable about 50 percent of the time as opposed to options traders, who are only profitable about 10 percent of the time. This is because options come with almost unlimited leverage, whereas leverage on futures is capped at 6 times (15 percent for index).