Risk Disclosure

Trading in securities, options, futures and other derivatives carries a high risk of loss and is not suitable for every investor. The risk-management methods taught here — position sizing, stop placement, risk-of-ruin control, diversification and exposure limits — can reduce the probability of catastrophic loss, but they cannot remove risk or guarantee any outcome.

• Every calculator and formula on this site rests on assumptions (a known edge, stable volatility, stable correlations) that can fail, especially during a market shock — the exact moment risk control matters most.
• Position-sizing and risk-of-ruin figures are estimates, not promises; the true probability of loss can be higher than any model suggests.
• Slippage, gaps, illiquidity, margin calls and overnight events can produce losses larger than your stop or your intended risk per trade.
• Leverage in F&O magnifies both gains and losses; you can lose more than your initial margin.
• Past performance and illustrative examples do not indicate future results.

Studies by regulators, including SEBI, have found that a large majority of individual F&O traders lose money. Never risk money you cannot afford to lose, size positions so that a normal losing streak is survivable, and treat capital preservation as the first objective. This site is educational only — see our SEBI Disclaimer.

Last updated 12 July 2026.