Salaried individuals should avoid F&O trading due to high risks, time constraints, and lack of expertise

Many salaried individuals end up experiencing significant losses from their F&O trading activities, which can eat away the income they earn from their regular jobs

Trading for Salaried Folks

Popularity and reality check of F&O trading

An urge to pursue a side hustle has made Futures and Options (F&O) and Intraday trading immensely popular amongst salaried individuals. In a recent survey by market regulator SEBI, the number of F&O traders has surged by over 500% in 3 years. However, 89% of individual traders suffered losses, averaging around Rs 1.1 lakh. Chartered Accountants speak about some severe loss bearing Income Tax Returns (ITR)s of the salaried; reason - unthoughtful F&O trading 


  • F&O markets can be highly volatile, leading to potential substantial profits or losses
  • F&O trading can create emotional stress, leading to impulsive decision-making and further losses
  • A complete understanding of F&O trading is difficult for inexperienced traders
  • Responsible F&O trading necessitates making well-informed decisions and exercising caution

Challenges for salaried individuals while trading in the stock market 

Salaried individuals have full-time jobs, and trading in F&O requires constant monitoring of the markets, quick decision-making, and timely execution of trades. It can be challenging to balance with their regular work commitments. F&O trading is complex and risky. It involves leverage, which means even small market movements can result in substantial gains or losses. F&O trading, intraday trading calls for dealing with uncertainty and the fear of potential losses, which further adds stress to already stressful jobs. Salary being the primary source of income, engaging in high-risk trading activities may hinder achieving milestone goals like retirement, child education, or buying a home.

As Mr Vijay Kedia, an ace stock market investor, once tweeted, "Encouraging a beginner to trade (F&O) is like giving a gun in the hand of an innocent person" He also tweeted, "Trading is like drugs. You will sell your house to buy drugs and trade to recover your losses"

Also Read: Top 5 Stock Market Gurus in India

What is F&O trading?

Futures and options trading are financial derivatives where investors agree to buy or sell assets at a specified price on a future date, enabling hedging or speculation. Futures and options trading are financial derivatives where investors decide to buy or sell the assets at a specified price on a future date, enabling hedging or speculation.

It's important to emphasise that trading in futures and options is not inherently dangerous but requires a careful, cautious, and informed approach. As with all investing decisions, it should be performed with a clear understanding of the risks involved and within one's financial capacity.

Disclaimer: This article is intended for general information only and should not be construed as investment, tax, or legal advice. You should separately obtain independent advice when making decisions in these areas.

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Also Read: How Traders Can Take Advantage of Options Chain Data


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