Risk disclosure on derivatives

Most individual traders lose money in F&O

SEBI’s studies of individual traders in the equity futures and options segment have found that the large majority incur net losses — its September 2024 study reported that about 9 in 10 individual F&O traders lost money over FY22–FY24. Transaction costs add to losses for those making losses and reduce profits for those making profits.

What WinstAI is — and is not

• India (NSE, MCX, mutual funds): WinstAI provides market data, analytics and educational explanations only. It does not provide investment advice, research recommendations, buy/sell signals, price targets or stop-losses on Indian securities.
• WinstAI is not registered with SEBI as an Investment Adviser or Research Analyst, and nothing in the India section should be read as a recommendation to trade.
• USA: the USA section includes AI-generated stock recommendations (buy/hold/sell views, target prices, buy zones, stop-losses and trade plans) on US-listed securities. These are impersonal and general — the same for everyone who selects the same inputs — and are not tailored to your finances, goals or tax position. WinstAI is not a registered investment adviser or broker-dealer. They can be wrong, are not a forecast, and past or modelled performance does not guarantee future results. Investing in US securities from India is subject to RBI’s Liberalised Remittance Scheme and tax rules; consult a qualified adviser before acting.
• AI-generated explanations describe the data. They can be incomplete or wrong, and they are not a forecast.

About the numbers you see

• Probabilities, expected moves and “today” P&L curves come from models (Black-Scholes, lognormal distributions) with stated assumptions. Real outcomes differ.
• Payoffs exclude brokerage, STT, exchange and SEBI charges, GST, stamp duty, slippage and margin requirements.
• Free-plan data is delayed. Data from any source can be late, missing or wrong; verify with your broker before acting.

Options-specific risks

• Option buyers can lose the entire premium; losses accelerate near expiry as time value decays.
• Option sellers can face losses far larger than the premium received, and must maintain margin.
• Changes in implied volatility can cause losses even when the underlying moves in your expected direction.