How much to invest in F&O or crypto: the 1% rule
SEBI's 2026 F&O study: 87.7% of individual traders lost money in FY26, ₹1.17 lakh each on average. Why any one bet should stay under 1% of net worth.
5 min read
A friend made money on options. A coin doubled last month. A tip stock "can't miss". So how much should you invest in F&O or crypto? The 1% rule gives a simple answer, and SEBI's latest F&O study shows why it matters.
What counts as a bet
- Futures and options, including weekly expiries.
- A single crypto coin, or a token a friend recommends.
- A tip stock or a small company you can't judge.
- Collectibles bought to flip.
Diversified mutual funds and index funds are not bets: they hold many companies, so one failing doesn't sink them.
What SEBI's F&O study found
SEBI studies the profits and losses of every individual trader in equity derivatives. Its August 2026 report covers FY26:[1]
- 87.7% of individual traders lost money. It was about 91% the year before.
- ₹91,685 crore lost in all: about ₹1.17 L a trader on average.
- 89% of traders under 30 lost money, and they're now the biggest group trading.
- Options caused 92% of the losses.
Why 1%, and not more
Traders use the same line for a reason: risk no more than 1% of capital on one trade, so a string of losses can't wipe you out.[2] With odds like SEBI's, the size of the bet matters more than the pick.
| Bet size | Lost | Net worth left |
|---|---|---|
| 1% of net worth | ₹40K | ₹39.6 L |
| 5% of net worth | ₹2 L | ₹38 L |
| 10% of net worth | ₹4 L | ₹36 L |
| 25% of net worth | ₹10 L | ₹30 L |
At 1%, losing everything costs ₹40K: a few months of a SIP. At 25%, it's ₹10 L, and the emergency fund, home down payment or retirement plan that money was meant for.
How to keep bets small
- Work out your line once: what you own less what you owe, times 1%.
- Count each bet on its own. Five coins at 1% each is five bets, not one.
- Don't top up a losing bet to "average down". That's how 1% becomes 10%.
- Wins don't raise the line by themselves. Take profit above it back into your plan.
See where your money sits, and how much is in risky bets against the rest.
What this doesn't mean
- It isn't a tip to bet. Zero is a fine amount to put in F&O or crypto.
- Your line can differ. RupeeFrame uses 0.5% if you take little risk and 2% if you take more.
- Past losses aren't a forecast for any one trader, but they show the odds the average one faces.
Net worth is everything you own less everything you owe. For illustration only, not advice on any product.