A 30-year-old salaried professional from India has drawn national attention after revealing on Reddit that he lost more than ₹2 crore in options trading, despite earning a monthly take-home salary of ₹2.85 lakh.

The man admitted that repeated losses pushed him into borrowing heavily through personal loans, overdrafts, and credit cards in an attempt to recover his money. His post, shared earlier this week, went viral and prompted widespread reactions online, with users offering financial advice, cautionary warnings, and emotional support.

The episode has once again highlighted the severe risks associated with derivatives trading, particularly for retail investors, amid repeated warnings from market regulator SEBI that most individuals trading in futures and options incur losses.

While no official statement has been issued on this specific case, the incident has reignited debate on financial literacy, responsible investing, and the growing culture of high-risk trading among young professionals.

When Trading Turns Toxic

The man, who described himself as a salaried employee working at a reputed firm, shared his ordeal on Reddit in a candid post that struck a chord with thousands of readers.

“On paper, things look fine but the reality is very different,” he wrote, explaining how his seemingly comfortable income masked deep financial distress. According to details later reported by Indian media, his losses in options trading exceeded ₹2 crore over time, wiping out savings and pushing him towards aggressive borrowing.

He reportedly took a personal loan of around ₹27 lakh, availed an overdraft facility worth approximately ₹28 lakh, borrowed another ₹8–9 lakh through unsecured loans, and accumulated nearly ₹12 lakh in credit card debt.

The mounting equated monthly instalments (EMIs), coupled with daily expenses, left him struggling to manage even basic financial commitments. In his post, the man acknowledged that continuing to trade in the hope of “recovering losses” only worsened his situation a pattern many financial experts describe as a dangerous psychological trap.

After stopping trading altogether, he turned to the online community for help, seeking advice on restructuring debt, negotiating with lenders, and regaining control over his finances.

While some users offered practical suggestions such as liquidating assets, consolidating loans, and consulting certified financial planners others warned against the glamorisation of derivatives trading and urged greater caution among retail investors.

Rising Participation, Repeated Warnings

This incident is not an isolated one. Over the past few years, India has witnessed a sharp rise in retail participation in the futures and options (F&O) segment, driven by low entry barriers, mobile trading apps, and social media narratives promising quick profits. However, data and regulatory studies consistently paint a grim picture of outcomes for individual traders.

Recent studies cited by the Securities and Exchange Board of India (SEBI) have shown that over 90 per cent of retail participants in equity derivatives incur net losses. Between recent financial years, cumulative losses in the F&O segment have run into lakhs of crores, with a small fraction of traders accounting for most of the profits.

SEBI has repeatedly cautioned that derivatives are complex financial instruments, unsuitable for investors without adequate knowledge, risk appetite, and capital buffers.

In response to rising retail losses, the regulator has introduced several measures, including higher margin requirements, changes in lot sizes, and stricter disclosure norms.

Despite these steps, experts argue that financial literacy has not kept pace with the rapid expansion of access to trading platforms. Easy leverage, combined with behavioural biases such as overconfidence and loss aversion, often turns trading into a high-stakes gamble rather than a disciplined investment strategy.

The Human Cost Of Financial Distress

Beyond the numbers, stories like this underscore the profound emotional and mental toll of financial distress. Several netizens responding to the Reddit post highlighted the anxiety, shame, and isolation that often accompany debt, especially for young professionals expected to be financially “successful”.

Mental health experts have long warned that financial stress can contribute to depression, sleep disorders, and strained personal relationships.

The anonymity of online platforms has increasingly become a space where individuals confess financial failures they might otherwise hide.

While this can foster solidarity and peer support, experts caution against relying solely on online advice for complex financial problems. Professional counselling both financial and psychological is often necessary to navigate such crises safely.

What Financial Experts Advise In Such Situations

Experts in personal finance and risk management emphasise that the first and most crucial step for individuals facing heavy trading losses is to stop all speculative activity immediately. Continuing to trade in the hope of “recovering” losses often deepens financial damage. Accepting losses, while emotionally difficult, is essential to regain control.

They also advise borrowers to take stock of their complete financial situation by listing all outstanding loans, interest rates, and monthly obligations. Prioritising high-interest debt, such as credit cards and unsecured loans, is critical, as these can spiral quickly if left unchecked. In many cases, restructuring loans, consolidating debt, or negotiating revised repayment terms with lenders can provide temporary relief and prevent defaults.

Another key recommendation is to build a realistic monthly budget that accounts for essential expenses, EMIs, and modest savings, even during debt repayment. Experts stress the importance of avoiding further borrowing unless absolutely necessary and caution against informal or high-interest sources of credit.

Equally important is addressing the psychological impact of financial loss. Prolonged stress, guilt, and anxiety can impair decision-making. Seeking emotional support from family, trusted friends, or mental health professionals can help individuals navigate the crisis more effectively and avoid impulsive choices.

Finally, experts underline the need for long-term financial education. Understanding basic concepts such as risk, diversification, asset allocation, and the difference between investing and speculation can empower individuals to make informed decisions and avoid repeating past mistakes.

The Logical Indian’s Perspective

This episode serves as a powerful reminder that income alone does not equate to financial security, and that unchecked risk-taking can dismantle years of hard work in a short span of time.

At The Logical Indian, we believe that stories like these should not be met with ridicule or moral judgement, but with empathy, awareness, and constructive dialogue.

While personal accountability is important, it is equally vital to question a system that normalises extreme risk without ensuring adequate financial education and safeguards.