A recent study by the Securities and Exchange Board of India (SEBI) has revealed that more than 70% of individual intraday traders in the equity cash segment experienced losses in the fiscal year 2022-23. The study highlighted a dramatic surge of over 300% in the number of participants in intraday trading compared to FY 2018-19.
SEBI’s comprehensive analysis, peer-reviewed by a working group of academia, brokers, and market experts, examined trading trends and profit and loss patterns among individuals in the equity cash segment over three fiscal years: 2018-19, 2021-22, and 2022-23. The study focused on individual clients of the top 10 stock brokers, representing approximately 86% of the individual client base in the equity cash segment during FY 2022-23.
SEBI STUDY ON INTRADAY TRADERS IN CASH MARKET
- One in three individuals trading in the equity cash segment engages in intraday trading.
- The number of intraday traders rose over 300% in FY 2022-23 compared to FY 2018-19.
- The share of young intraday traders (under 30 years old) grew to 48% in FY 2022-23 from 18% in FY 2018-19.
- 71% of individual intraday traders incurred net losses in FY 2022-23.
- Among very frequent traders (more than 500 trades in a year), the proportion of loss-makers increased to 80%.
- Younger traders (under 30 years old) had a higher percentage of loss-makers at 76% in FY 2022-23.
- Loss-makers executed more trades on average than profit-makers.
- In addition to trading losses, loss-makers spent an extra 57% of their trading losses on costs, while profit-makers spent 19% of their trading profits on costs.
