Innovative Features Launched by Brokerages to Promote Responsible Derivatives Trading
Brokers Groww and Samco Securities have rolled out new features to help retail investors trade derivatives responsibly and with more knowledge. This move comes after a Sebi study found that 93% of individual traders in equity Futures & Options (F&O) faced losses between FY22 and FY24, totaling over Rs 1.8 lakh crore in losses over three years.
In response, Groww introduced a risk management feature called F&O Safeguard. This feature prompts traders to reassess their trading approach if they consistently incur losses, and it may pause their F&O trading until they provide additional suitability information. Groww also offers tools like F&O Pause to halt trading during volatile periods or losses, and Safe Exit to automatically close positions after reaching a pre-set loss limit. These features aim to give traders more control and discipline.
On the educational front, Groww engages with 12.5 million active investors through Groww Digest, providing market trends, investment strategies, and financial literacy tips in eight languages. Similarly, Samco Securities introduced Options B.R.O. (Build, Research, and Optimize) to help traders transition to a strategic and responsible trading approach. This feature allows traders to build customized option strategies based on their market outlook, backed by research on over 1,000 strategies. Traders can optimize their strategies using filters that align with their risk appetite and objectives for responsible trading.
Moreover, Axis Securities focuses on empowering investors through informed decision-making and detailed reports, simplifying the complexities of the stock market for beginners, providing resources on advanced charting tools and trading strategies for experienced investors.
Overall, these initiatives aim to promote responsible trading practices, enhance financial literacy, and reduce losses for retail investors in the equity derivatives market.
