Groww launches new features to protect F&O traders from losses
Groww, a leading brokerage firm in India, has launched three innovative features aimed at minimizing losses for futures and options (F&O) traders. The new additions, namely F&O Pause, Safeguard, and Safe Exit are specifically designed to enhance risk management strategies for traders. These tools come amid growing concerns by the Securities and Exchange Board of India (SEBI) over increasing F&O trading volumes and associated losses on domestic exchanges.
F&O Pause: A breather during market volatility
The F&O Pause feature allows traders to temporarily halt their F&O accounts during periods of market instability or personal need for a break from trading. This pause only impacts F&O trading, leaving other investments like mutual funds and stocks unaffected. Traders have the flexibility to resume their accounts when they feel ready, providing them with greater control over their trading activities.
Safeguard: A warning system for consistent losses
The second feature, Safeguard, is designed to deter traders from persisting in trading activities if they encounter continuous losses. In such cases, Groww will advise them to reconsider their F&O operations. To continue trading after this warning, traders must provide additional information or face a suspension of their F&O account after 30 days. This feature is exclusively applicable to F&O trading and aims to prevent further financial damage.
Safe Exit: An automatic limit on losses
The third feature, Safe Exit, functions as a safety net by automatically capping losses on F&O positions. When a trader's losses reach a predetermined limit, this tool assists them in exiting their trade positions. This is akin to the stop-loss setting used in intraday equity trading and is expected to be particularly useful during times of high market volatility.
Groww CEO emphasizes on responsible trading
Lalit Keshre, the founder and CEO of Groww, emphasized the significance of these features in encouraging responsible trading among customers. He stated, "While we continue making investing simple, we have also been building tools for responsible trading among our customers." Keshre further noted that due to the significant growth of F&O trading in recent years, there is a need for robust risk management tools to prevent capital erosion caused by overtrading.
