Options volume hits record high; forms 97% of F&O contracts traded in FY22

The margin requirement for the futures segment has risen substantially after the introduction of peak margin norms last year

Trading in the options segment of the exchanges has touched a record high this year, led by factors such as the entry of new individual traders amid the Covid-19 pandemic, an uptick in margins in the futures segment, increased activity from algo traders, and the weekly expiry cycle.

The number of contracts traded in the options segment in FY22 so far makes up over 97 per cent of the total futures and options (F&O) contracts, with action largely concentrated in the Nifty and Bank Nifty index options. This figure was about 83 per cent five years ago.

Market observers believe that most