Options trading volume on NSE touches all-time high in September

6 Oct 2022 , 08:20 AM

In September, the average daily volume of options on the NSE reached an all-time high of Rs150 lakh crore, up 13% from August and more than twice as much as September of the previous year, as traders in the Indian market shifted dramatically from the cash segment to options in response to the market regulator Sebi’s new framework on peak margin requirements.

News reports cited a range-bound market and a change in traders’ mindset as two additional causes for the new data pattern.

In September 2022 compared to September 2021, the average daily cash market volumes on the NSE and BSE fell by 11% year over year to Rs66,900 crore.

For retail investors eager to place leveraged bets in the hope of astronomical rewards, options have become a popular vehicle. Retail trades currently account for 35.9% of the value of option premiums exchanged, up from 33.7% in FY22.

In the previous year, futures trading volumes somewhat increased. In September 2022, the daily average volume of futures trading increased merely 5.5% to Rs1.27 lakh crore.

For feedback and suggestions, write to us at [e-mail]