Brokerages launch features to encourage safer derivatives trading

Brokerage firms such as Groww and Samco Securities have introduced tools to make derivatives trading safer and more responsible for retail investors. Axis Securities is also playing a key role by prioritising education and financial literacy to help traders make informed decisions.The push for responsible trading comes alongside stricter regulations from SEBI, which have reshaped the derivatives landscape.

The market regulator recently limited weekly options contracts to one per exchange and increased the minimum trading value to ₹15-20 lakh, up from ₹5-10 lakh. It has also introduced measures like mandatory upfront premium collection, intraday position monitoring, removal of calendar spread benefits on expiry day, and better coverage for tail risks.

These changes are a response to a SEBI study revealing that 93% of individual traders in equity Futures & Options (F&O) incurred losses from FY22 to FY24, with combined losses exceeding ₹1.8 lakh crore.

To address these challenges, Groww has introduced features designed to help traders manage risks effectively. The F&O Safeguard monitors trading patterns and pauses F&O activity for traders who consistently incur losses, requiring them to reassess their strategies.

Another tool, F&O Pause, allows users to halt trading during periods of high market volatility or after significant losses. Additionally, the Safe Exit feature automatically closes positions when losses reach a pre-set limit, helping traders avoid further financial damage.

These features empower traders to control their risks and develop disciplined trading habits.

Samco Securities has also launched “Options B.R.O.”—a tool that helps traders transition from speculative behavior to a more strategic mindset. This feature enables users to create custom trading strategies based on market outlooks, such as bullish, bearish, or neutral trends.

It also provides in-depth research on over 1,000 strategies, detailing potential risks, profits, and option metrics.

By allowing traders to optimise strategies with filters like risk type and probability of profit, Samco ensures that decisions align with individual risk appetites.

Axis Securities focuses on educating investors rather than offering direct stock tips. The firm simplifies complex trading concepts for beginners, covering topics such as how markets work and the dos and don’ts of investing.

For experienced traders, it provides resources on advanced charting tools and trading strategies, ensuring a comprehensive learning experience.