Does losing money in Derivative Trading truly equate to "paying for experience"?

[BB789]

@SpacemanSpiff

Yes, very stupid to scale up when you are not profitable

While I agree, as per SEBI study, capital makes a difference. In general, large the capital, lesser the probability of losses.

@Adarsh_Patil

More capital reduced the probability of losing, not the size of losses

Around 77% of traders used less than ₹1 lakh of peak margin during FY26, and around 90% of this group made losses.

As capital increased, the percentage of loss-makers came down. Among traders using ₹10 lakh–₹1 crore, around 67.6% were loss-makers. But when these traders lost money, the losses were much larger.

The average loss per loss-making trader increased from around ₹5,600 for traders using less than ₹10,000 to around ₹9.6 lakh for traders using ₹10 lakh–₹1 crore.

So more capital reduced the frequency of losses, but the absolute amount lost increased considerably.

While absolute amount might have increased, the percentage would still be small