High-Speed Trading in India: $7 Billion Profit at the Cost of Retail Traders

High-Speed Trading in India: $7 Billion Profit at the Cost of Retail Traders

A New Study Reveals the Disparities in India’s Booming Options Market

High-speed traders in India’s options market reaped an astonishing $7 billion in profits, predominantly at the expense of individual traders, who collectively lost ₹61,000 crore in the last financial year. This phenomenon highlights the risks faced by retail investors in the rapidly expanding equity derivatives segment, which saw turnover exceed $6 trillion. With algorithms favoring institutional players, experts caution that individual traders struggle to compete against mathematically optimized strategies. The findings call attention to the Securities and Exchange Board of India’s ongoing efforts to regulate this volatile market environment.

 

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