MONEY
71% of intraday traders in equity cash market made losses in FY23
- IBJ Bureau
- Jul 25, 2024
A study by market regulator SEBI shows that seven out of 10 individual intraday traders in the equity cash segment made losses in 2022-23.
At the same time, the study highlights a sharp surge of over 300 per cent in the number of individuals participating in intraday trading in the equity cash segment in 2022-23 compared to those in 2018-19.
Interestingly, the average number of trades by loss-makers was higher than that of the profit-makers. Further, the share of young intraday traders, with less than 30 years of age, has risen significantly over the period, according to the study released by the SEBI.
The markets regulator has conducted a study to analyse the trends in participation and profits and losses in intraday trading by individuals in the equity cash segment. It covered the periods of FY2018-19, FY2021-22 and FY2022-23 to comparatively analyse the trends before and after the pandemic.
The study, based on a sample of individual clients of the top-10 stock brokers accounting for around 86 per cent of the individual client count in the equity cash segment during 2022-23, has been peer-reviewed by a working group with representation from academia, brokers and market experts.
In its study, the SEBI has found that around one in three individuals, who trade in the equity cash segment, trades intraday. Moreover, the share of young intraday traders, with less than 30 years of age, has grown to 48 per cent in 2022-23 compared to 18 per cent in 2018-19.
“Seven out of 10 individual intraday traders or 71 per cent in the equity cash segment incurred a net loss in FY2022-23,” the study has said, adding that the proportion of loss-makers has jumped to 80 per cent for traders with very frequent (more than 500 trades in a year) trading activity.
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