Track 07Module 3 of 45 sources
Derivatives rules, expiries and what the regulator found
Know the contract rules that shape Indian derivatives and the evidence on who makes money in them.
Key ideas
- Each exchange now has one weekly index expiry. Lot sizes were raised and extra margin applies on expiry day, all to cool speculative volume.
- Regulator studies found that about nine in ten individual derivatives traders lose money, and that costs take a large share of the losses.
- Proprietary desks and foreign funds using algorithms earned most of the profits on the other side.
- Expiry-day price moves can be driven by large players' positions. The 2025 interim order against a global trading firm is the case study.
Start hereWatch or read these first. They carry the core idea.
PDF
Analysis of Profits and Losses in the Equity Derivatives Segment (FY22 to FY24)
SEBI · 2024
The regulator's own numbers on retail profit and loss in derivatives. Read the summary tables.
Regulator
Interim Order in the matter of Index manipulation by Jane Street Group
SEBI · 2025
The interim order describing alleged expiry-day index manipulation. Shows how cash and options interact.
CoreThe standard references. Work through them once the idea is clear.
Regulator
Circular: Measures to Strengthen Equity Index Derivatives Framework
SEBI · 2024
Where every rule change is published first.
New F&O Closing Auction Rules Explained | How SEBI's New Norms Will Impact Traders
Video · NDTV Profit · 2:04
The closing auction rules for derivatives stocks in two minutes.
Course
Varsity Module 4: Futures Trading
Zerodha Varsity
Futures mechanics, margins and leverage with Indian contracts.
Practice
Read the summary of the latest regulator study. Write down the three numbers that should shape how you size derivatives trades.
See it live
Where this leads
02.5 · Options and Options FlowIndian F&O: the chain, open interest, expiry and the loss studiesRead the NSE option chain as a map of positioning, and know what SEBI's data say about who makes money.08.2 · Risk, Losses and ProcessWhy most traders lose: the evidenceKnow the base rates for retail trading so that your plan starts from reality.