A look at India vs US derivatives market

General
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Everyone keeps saying the Indian markets are evolving, too much trading, too many new people, F&O volumes shooting up, etc.

Quoting @nithin’s tweet:

Despite all the discussions about the Indian derivative turnover, we are barely 25% of US premiums.

Btw, these numbers don’t give you a full picture of the crazy levels of gambling and speculation in the US. Outside the exchange-traded derivatives, people can gamble on leveraged ETFs (these are massive), crypto, prediction markets like Polymarket, sports betting, and other things.

When you look at what’s happening in the US and then look at India, our markets look so sane.

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Thoughts? How do you see this evolving over the next few years?

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Turnovers are in usd? If so, wouldn’t it make sense to normalise it as a % of total marketcap?

2 Likes
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India feels super active right now, but the US still plays on a whole other level with way more options to speculate. I think India will keep growing, especially with younger traders jumping in—but hopefully with more focus on education and risk management.

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Can Indians trade in polymarket.com? Does it come under RBI LRS?

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No , Speculative trading is not allowed under LRS.

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Very bad choice of Graph. If you remove the text explanation it looks like India’s Premium Turnover is approx 700 Trillion whereas US turnover premium is 550 Trillion. So, according the graphical depiction India’s Premium turnover is more than that of US.