Moth to a flame: Why are retail traders inexorably drawn to derivatives?

Why do sensible traders use these? Some hedge using F&O. Others play news-based events

Recent remarks by Madhabi Puri Buch, head of the Securities and Exchange Board of India (Sebi), the stock markets regulator, have focussed attention on retail speculation in the equity derivatives: futures and options, or F&O, segment. The Sebi chairperson said she was surprised at the retail investors’ interest in this market and advised them to stick to the cash segment.
 

“I must admit, I am always a little confused and surprised as to why people continue to do that (bet on F&O) knowing that the odds are not in their favour at all,” Buch said at the launch of the