The Indian market: who trades, who loses, who leads
Analysis of Intraday Trading by Individuals in Equity Cash Segment
71% of individual intraday traders in the cash market lost money in FY23, rising to 80% for very frequent traders. Under-30s grew to 48% of intraday traders. Based on data from the top 10 brokers.
Profitability of Individual Traders in the Equity Derivatives Segment (FY25–FY26)
Individuals' net losses in equity derivatives fell 18% to ₹91,685 crore in FY26 and loss-makers fell to 87.7%, yet those still trading lost slightly more on average. Also measures the effect of SEBI's November 2024 F&O measures.
Trading Behaviour of Individual Traders in the Equity Derivatives Segment (FY25–FY26)
97% of individual F&O traders are mainly option buyers and about 90% of them lose money. Option sellers lose less often but far more when they do. A sample-based picture of the retail flow on the other side of index options.
Futures and options expiration-day effects: The Indian evidence
Underlying share prices dip slightly the day before expiry and rise significantly the day after, with abnormally high expiry-day volume, mainly due to arbitrage unwinds and short-selling restrictions.
When stock futures dominate price discovery
On NSE's highly liquid single-stock futures, futures carry about 55% of the information share around news, rising to 61% on bad news when short-sale limits push informed traders to futures. The leverage-versus-liquidity trade-off decides which market leads.
The causal impact of algorithmic trading on market quality
Uses the introduction of co-location at NSE as a natural experiment. Stocks with more algorithmic trading show lower liquidity costs, less order imbalance and fewer extreme intraday price moves.
Low Latency Trading and the Comovement of Order Flow, Prices, and Market Conditions
Order-level NSE data around the co-location launch: more algorithmic trading reduces commonality in order flow, returns, liquidity and volatility across stocks, which argues against the idea that low-latency trading raises systemic risk.