Submission + - India Trades Over Four-Fifths of the World's Equity Options. Nine in Ten Lose. (indiadispatch.com)
An anonymous reader writes: India's National Stock Exchange trades more derivatives contracts than any other bourse, more than the CME, Cboe, Nasdaq and the rest of America's exchanges combined. The country now accounts for more than four-fifths of all equity options traded on earth, up from nearer a seventh a decade ago, and nine in ten of the individuals trading them lose money. Most are index contracts a fraction of an American option's size. NSE is selling about 6% of itself, listing on the rival Bombay exchange it long ago overtook.
The exchange earns money when Indians trade rather than when they own, win or lose, and equity options alone supplied 60% of revenue last year. Net profit reached $1.1 billion in the year to March 2026, on the highest operating margins of any large exchange. Individual traders lost a combined $11 billion the year before, close to ten times NSE's profit, and more than 40% of them are under 30.
Fewer than one in a hundred Indians trade derivatives today, on a market the regulator is already straining to cool, in a country where hundreds of millions are opening their first investment accounts. A buyer of NSE is wagering that India decides it wants the activity, and the tax it throws off, more than it minds the losses. Every market democracy has faced that choice. South Korea's index options were once the most heavily traded contract in the world, until in 2012 its regulator made them five times more expensive to curb the speculation, and the boom collapsed. India is facing the same choice at a scale no rich country reached, and among people far poorer.
The exchange earns money when Indians trade rather than when they own, win or lose, and equity options alone supplied 60% of revenue last year. Net profit reached $1.1 billion in the year to March 2026, on the highest operating margins of any large exchange. Individual traders lost a combined $11 billion the year before, close to ten times NSE's profit, and more than 40% of them are under 30.
Fewer than one in a hundred Indians trade derivatives today, on a market the regulator is already straining to cool, in a country where hundreds of millions are opening their first investment accounts. A buyer of NSE is wagering that India decides it wants the activity, and the tax it throws off, more than it minds the losses. Every market democracy has faced that choice. South Korea's index options were once the most heavily traded contract in the world, until in 2012 its regulator made them five times more expensive to curb the speculation, and the boom collapsed. India is facing the same choice at a scale no rich country reached, and among people far poorer.