Risk Disclosure

Trading in options, futures and other derivatives carries a high risk of loss and is not suitable for every investor. You can lose more than your initial outlay when selling options.

• Option buyers can lose 100% of the premium paid, often rapidly, due to time decay (Theta) and volatility collapse (Vega).
• Option sellers face large, and in some cases theoretically unlimited, losses that can exceed the premium received.
• Leverage magnifies both gains and losses; small moves in Nifty can cause large percentage swings in option value.
• Gamma risk near expiry can turn a small adverse move into a large, accelerating loss.
• Past performance and illustrative examples do not indicate future results.

Studies by regulators, including SEBI, have found that a large majority of individual F&O traders lose money. Never trade with money you cannot afford to lose, and use the Greeks to size and manage risk. This site is educational only — see our SEBI Disclaimer.

Last updated 7 July 2026.