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Veteran investor Vijay Kedia has raised serious concerns about retail investors gambling rather than investing strategically in the futures and options (F&O) segment. His remarks come amid a surge in retail participation, with many newcomers entering the market without proper risk management strategies.“F&O was meant for hedging, not hoping — but retail is turning the market into a casino. Maybe it’s time we ask: should access come with a license, not just a login?” Kedia said.The capital markets regulator Sebi has also repeatedly flagged the high failure rate in F&O trading, noting that over 90% of retail traders lose money in this segment. It has mandated brokers to display prominent risk warnings on their platforms regarding F&O trading.“Over 90% of retail traders lose money in F&O. This isn’t risk management — it’s just gambling, masked as strategy. We may call it a hedge, but the data calls it a warning,” Kedia added.A study revealed that between FY22 and FY24, 93% of individual traders in the equity F&O segment incurred losses, totaling Rs 1.8 lakh crore. The average loss per trader stood at Rs 2 lakh, while only 1% managed to earn profits exceeding Rs 1 lakh after accounting for transaction costs.In response, Sebi has introduced a series of regulatory measures aimed at curbing speculative retail trading in the F&O segment. These include raising the minimum contract size for index derivatives to Rs 15 lakh and limiting weekly expiries to one per exchange.Additionally, an extreme loss margin (ELM) of 2% has been imposed on short index options contracts on expiry days. These steps form part of a broader effort to enhance investor protection and ensure market stability.According to reports, Sebi is also considering a 'suitability test' for retail F&O traders. The proposed measure would require traders to demonstrate a clear understanding of the risks associated with derivatives trading—potentially through mandatory exams or by meeting minimum income and capital thresholds.Kedia had earlier highlighted the psychological trap that many retail investors fall into—believing they can quickly build capital through F&O trading before transitioning to long-term investing.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)

Three Indian-origin people were found dead after a shooting at a house in Newcastle town in Washington in the United States, The Seattle Times reported, citing the King County medical examiner's office.King County sheriff's spokesperson Brandyn Hull said Sheriff's deputies responded to a 911 call around 7 pm on April 24 at a town home off 129th Place Southeast. According to the report in the US media outlet, detectives found blood on the front window and a lone hollow point bullet in the street. 120738876Shwetha Panyam (41) and Dhruva Kikkeri (14) died from gunshot injuries. Deaths of Panyam and Dhruva were classified as homicide, while Harshavardhana Kikkeri (44) died due to suicide, according to the medical examiner's office.Brandyn Hull said she could not make a statement on whether the case was believed to be a murder-suicide, The Seattle Times reported. In a statement on Monday, she said, "An investigation such as this takes time, and our detectives are working diligently to try and piece together what led to this incident.""Until this work concludes, the Sheriff's Office won't have any further updates," she added. Homeowner Association President Alex Gumina said a family of four -- a husband, wife and their two sons -- lived in the home and mostly kept to themselves, The Seattle Times reported.The sheriff's office did not release any other information, including any sign of motive or the relationship that the deceased shared. (ANI)