What SEBI changed in F&O, and what normal traders still get wrong.

The easiest way to misunderstand SEBI's F&O changes is to think the regulator tried to kill options trading. That is not what happened. SEBI changed the design of the products and the access conditions around them.

The first mistake normal traders still make is confusing cheaper premium with lower risk. A far out-of-the-money option priced at a few hundred rupees feels harmless because the absolute ticket size is small.

For an ordinary trader, the practical takeaway is not never trade derivatives. It is that derivatives should be approached as capital-intensive, rule-sensitive instruments whose risk comes from structure as much as direction.