Last Updated:
Despite earning around Rs 17 lakh a year, he lives under constant pressure, knowing that a single missed EMI could put his home at risk
His cumulative losses crossed Rs 1 crore, wiping out all his savings and leaving him with a debt burden of nearly Rs 70 lakh. (AI Image)
Participation in stock markets is climbing steadily, driven largely by young investors drawn to the promise of quick gains. Futures and Options (F&O), in particular, are increasingly seen as a fast track to wealth. The reality, however, is far harsher. Industry data shows that more than 90% of small retail investors in the F&O segment end up losing money.
This uncomfortable truth resurfaced this week after a social media post went viral, recounting how a once “perfect success story” unravelled because of options trading. The account was shared on X by Nihal Gupta, who described the downfall of his cousin, a man who, by most measures, had everything going for him.
According to the post, the man was a consistent topper in school, went on to earn a B.Tech from a top college and later completed an MBA from a leading institute. He began his career in 2013 with an annual package of Rs 12 lakh, rapidly rising through the ranks. Within a few years, he had bought a house, secured his family’s future and become the benchmark of success among relatives and peers.
The turning point came with option trading. Initial trades delivered strong profits, reinforcing a sense of confidence that soon turned into overconfidence. Encouraged by early wins, he began taking larger positions. When market conditions shifted, profits gave way to mounting losses. Convinced that one decisive trade would help him recover, he refused to step away.
In pursuit of that recovery, he made what his family now considers the costliest decision of his life, quitting a stable, high-paying job to trade full-time. As losses deepened, savings were exhausted. Personal loans followed, then an enhanced home loan, and eventually borrowing from friends and relatives.
Over the next decade, his cumulative losses crossed Rs 1 crore, wiping out all his savings and leaving him with a debt burden of nearly Rs 70 lakh. Today, at 35, he remains unmarried and financially strained. Despite earning around Rs 17 lakh a year, he lives under constant pressure, knowing that a single missed EMI could put his home at risk. The same analytical mind that once built strategies for major companies now spends long hours at trading terminals, struggling to stay afloat.
The story struck a chord online. As Gupta’s post spread, hundreds of traders shared similar experiences of chasing market “tops” and “bottoms” in the derivatives segment, only to lose years of savings in the process. The oft-quoted statistic, nine out of ten retail investors losing money in F&O, echoed repeatedly in the replies.
Amid growing concern that derivatives trading is turning into large-scale speculation, the Centre has moved to step in. In the Union Budget 2026-27, the finance minister proposed a sharp increase in the Securities Transaction Tax (STT) on futures and options. The government has warned that the notional volume of derivatives trading in India has ballooned to nearly 500 times the country’s GDP, calling it a potential systemic risk to the economy.
Click here to add News18 as your preferred news source on Google.
February 05, 2026, 18:03 IST
Read More