Two more stocks—Indian Renewable Energy Development Agency (IREDA) and Tata Technologies—will join India’s fast-paced futures and options (F&O) segment from the March series, according to a National Stock Exchange (NSE) circular issued on Wednesday.

This follows the earlier addition of four stocks—NBCC, Phoenix Mills, Solar Industries, and Torrent Power—announced on January 30.

With these inclusions, traders and investors will have more options in the derivatives market starting February 28, when the March F&O series begins.

The current February series is set to expire on February 27.

Derivatives trading involves buying and selling financial contracts whose values are derived from underlying assets such as stocks, indices, currency pairs, or commodities.

Unlike spot trading, which involves direct ownership of securities, derivatives allow participants to speculate on price movements without holding the asset, making it a riskier yet high-reward market segment.

The Securities and Exchange Board of India (SEBI) has repeatedly highlighted the risks associated with F&O trading. Over the years, the regulator has conducted studies and released reports cautioning investors, particularly retail traders, about the volatility of derivatives markets.

In a study released last year, SEBI found that nearly seven out of ten intraday traders in FY23 incurred losses, underscoring the high-risk nature of the segment. Many market experts continue to warn new investors against engaging in intraday and leveraged trading without proper risk assessment.