ETMarkets Smart Talk | Retail traders lost ₹1.8 lakh crore in F&O: Can algo trading change the game? Rakesh Pujara explains
Retail investors have suffered massive losses in the F&O market, with estimates suggesting they lost nearly ₹1.8 lakh crore between FY22 and FY24. This significant figure highlights the high risk associated with derivatives trading, where a majority of individual traders have failed to generate consistent profits over the past two years.
The growing popularity of algorithmic trading could offer a potential solution. By using automated systems, retail investors may gain access to advanced tools and speed that were previously the domain of institutional players. This technology allows for faster execution and more disciplined decision-making, which might help level the playing field for smaller traders.
Investors should carefully weigh the benefits of automation against the risks of over-reliance on technology. While algorithms can improve efficiency, they are not a guaranteed path to profit. It is crucial for traders to understand the mechanics of these systems and manage their exposure wisely.
Key takeaways
- Category: Stocks.
- AI reads the tone as negative (potentially bearish) for the stock.
Why it matters
A routine update. The tone is negative — watch for downside reaction. Use the price and stock snapshot to gauge how the market is responding.














