The count of equity derivatives traders dropped from 1.06 crore to 85 lakh between FY25 and FY26, while commodity traders expanded from 13 lakh to roughly 21 lakh. Market participants have turned to assets like gold, silver, crude oil, and natural gas due to substantial price volatility. Furthermore, commodity options require lower upfront capital compared to equity positions, attracting speculative capital following regulatory curbs.
Key points
Regulatory curbs by SEBI on equity contract sizes and weekly expiries have encouraged mar…: Regulatory curbs by SEBI on equity contract sizes and weekly expiries have encouraged market migration into alternative asset classes.
High volatility across commodities like gold, silver, crude oil, and natural gas continue…: High volatility across commodities like gold, silver, crude oil, and natural gas continues to attract options trading volumes.
Commodity options present a lower upfront payment threshold than futures contracts or opt…: Commodity options present a lower upfront payment threshold than futures contracts or option selling, appealing to cost-sensitive retail participants.
Sources checked by our analysis pipeline: 1
In a post on X, Kamath highlighted the growing interest in commodity trading on the Multi Commodity Exchange (MCX), raising questions about whether heightened volatility in gold, silver, crude oil and natural gas is drawing traders away from equity derivatives.
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"The increase in the number of traders on MCX (commodities) is interesting," Kamath said.
According to the figures shared by him, the number of equity F&O traders declined from 1.06 crore in FY25 to 85 lakh in FY26, a fall of nearly 20%. During the same period, the number of commodity traders increased from 13 lakh to almost 21 lakh, representing a rise of about 62%.
The contrasting trends come as India's equity derivatives market faces tighter regulations aimed at curbing excessive speculation, particularly among retail investors.
Kamath believes the rise in commodity traders coincides with the growing popularity of options trading on MCX.
"I think this coincides with the growth of options trading on MCX," he said.
He also pointed to sharp price movements in major commodities as a possible reason…
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