Groww today announced the launch of new features designed to help F&O traders mitigate losses in F&O. The new features—Safeguard and F&O Pause—expand the suite of guardrails that reflect Groww’s capabilities in protecting investor wealth amid continuing market momentum. With India’s F&O market experiencing significant growth in recent years, the need for robust risk management tools has become increasingly apparent. Groww’s new features aim to help the F&O participants protect their capital and avoid costly mistakes.

Groww is one of India’s leading fintech platforms and is at the vanguard of transitioning domestic savings into liquid financial assets. Groww’s product-rich approach has built a platform emphasising seamless access and a prudent investing culture as the country’s financial markets navigate an inflexion point in retail participation.

●      F&O Pause: Overtrading is a leading cause of capital erosion for most traders. The F&O pause feature allows traders to temporarily pause their F&O account during periods of market volatility or when they need to take a break from trading. Whenever ready, users can choose to unpause. This feature aims to enable users to maintain discipline and avoid costly errors due to the temptation of over-trading or revenge trading. Every day thousands of traders are using this feature. While F&O pause is activated, customers can continue to invest in Mutual Funds and Stocks.

●      Safeguard: Safeguard is a risk management feature designed to act as a deterrent for F&O traders experiencing losses consistently. When a customer repeatedly incurs losses, they will be nudged about a potential halting of F&O trading on Groww. The customer would be required to provide additional information to prove suitability to continue trading on Groww. Failing which, their F&O trading account will be stopped after 30 days. This feature only restricts F&O activity while customers can continue to invest in Mutual Funds and Stocks.

●      Safe Exit: Groww recently launched a Safe Exit feature, which acts as a safety net by automatically limiting losses on F&O positions. This feature helps traders exit their F&O positions once their loss crosses the limit set by them. Safe Exit can be beneficial during periods of high market volatility and for retail traders who want to limit their risk exposure. More than 7 lakh traders on Groww have used this feature to protect their downside.

These features all comprise the anti-nudges built into the app to make investors aware of the risks of trading.

Harsh Jain, Co-Founder and COO, Groww said, “Our new F&O features are designed to help traders navigate market volatility and avoid behavioural mistakes. It is part of a constant endeavour to productize our safety instincts at a buoyant and critical moment in the journey of Indian financial markets. We are consistent in our messaging that F&O bears high risk, so not everyone should participate in it.”

India’s F&O market has witnessed a remarkable surge in recent years. According to the RBI’s Financial Stability Report released in June 2024, the equity derivatives segment noticed growing participation from traders, rising 42.8 percent to touch 95.7 lakh in the financial year 2023-24, as compared to 65 lakh in 2022-23. The rising popularity of F&O products among Indian investors underscores the country’s growing sophistication in the financial markets.