As algorithms outpace human traders in the high-stakes derivatives market, FIIs and proprietary traders collectively generated approximately ₹59,000 crore in profits during FY24, according to a recent SEBI study.
Proprietary traders using algorithms earned around ₹32,000 crore, while algorithm-backed FIIs made ₹26,900 crore over the same period.
‘The majority of profits for FPIs and proprietary traders were generated by algorithmic entities,’ the SEBI report noted. ‘In FY24, 97% of FPI profits and 96% of proprietary trader profits came from these algo entities.