What still draws them to high-risk derivatives is perhaps the scope they hold for placing low-ticket, big- bounty bets onvolatile asset prices. Derivative deals take little upfront money, with gains and losses to be squared only at the end oftheir life. On occasion, they yield outsized profits, which can have a heady effect that may interfere with rationalestimates of one’s future chances. As the F&O segment’s dismal win ratio suggests, it maybe easy to get drawn intoover-confident trading that goes wrong more than right. It’s good that Sebi has flagged the problem.

– Commentary in News