1. Summary
Trading in financial instruments, including equities, futures, and options, algorithmic trading strategies, involves substantial risk and may not be suitable for all investors. The use of Quantpower.tech’s software, tools, or algorithmic strategies may result in significant losses, including losses exceeding the initial investment. Users should trade only with risk capital and fully understand the risks involved before participating.
2. What SEBI’s studies found
SEBI’s studies of individual traders in equity futures and options show that most of them lose money.
- 87.7%
- of individual traders made net losses in FY26
- ₹91,685 cr
- net losses of individual traders in FY26
- 92%
- of those losses came from options
- 93%
- of individual traders lost money over FY22 to FY24
Source: SEBI, Profitability of Individual Traders in the Equity Derivatives Segment (FY25–FY26), PR No. 50/2026, 20 August 2026
Source: SEBI, study of individual traders in equity F&O for FY22 to FY24, PR No. 22/2024, 23 September 2024
3. Risks of futures and options
- Leverage: a small margin controls a large position, so losses can exceed the margin you deposit.
- Gaps: prices can open far from the previous close, beyond your stop loss.
- Liquidity: some contracts trade thinly, so you may pay a wide spread or be unable to exit.
- Expiry: option prices can change sharply as expiry approaches.
- Margin calls: your broker may close positions if your margin falls short.
4. Risks of algorithmic trading
- A strategy with a logic error can repeat the same mistake quickly.
- Backtested and paper-trading results are hypothetical and often better than live results.
- Internet, broker or exchange outages, expired sessions and software errors can leave positions unmanaged.
- Orders can be rejected, fill in parts or fill at a different price.
- Stop losses and MTM limits send exit orders but cannot guarantee the exit price.
5. No advice or guaranteed returns
QuantPower provides software tools for analysis, testing and automation. Nothing on the platform or this website is investment advice or a recommendation to buy or sell any security.
Examples, payoff charts and backtests on this website are for illustration. Past performance, including backtested or hypothetical results, is not indicative of future results.
6. Your responsibilities
- Understand each product and strategy before you trade it.
- Trade only with money you can afford to lose.
- Set limits, and monitor your strategies while they run.
- Keep your broker login and two-factor codes private.
7. Questions
Email info@quantpower.tech or call +91 97111 30044.