India stock markets may be leading the world in options trading volumes, but when it comes to premium turnover, it still lags far behind the United States. Zerodha co-founder and CEO Nithin Kamath highlighted this contrast in a recent tweet that compares India’s and the US’ options markets.
The chart, shared by Kamath, shows that while India accounts for nearly 10 times more options contracts than the US, the premium turnover — the amount paid to purchase options — is only a fourth of that in the US.
“Despite all the discussions about the Indian derivative turnover, we are barely 25% of US premiums,” Kamath wrote in a post on X (formerly Twitter).
The data compares contracts in billions and premium turnover in trillions of rupees, with India dominating in contract volume but trailing the US significantly in the value of premiums exchanged.
Beyond the Exchanges: The Bigger US Risk Playground
According to Kamath, the US market’s speculative intensity is far broader than what’s visible through regulated exchange-traded derivatives
He pointed out that the numbers in the chart do not capture the full extent of speculative activity in the US. “These numbers don’t give you a full picture of the crazy levels of gambling and speculation in the US,” he said.
According to Nithin Kamath, US investors have access to a range of speculative tools beyond exchange-traded derivatives. These include leveraged exchange-traded funds (ETFs), cryptocurrencies, prediction markets like Polymarket, and sports betting platforms.
These alternative avenues, often lightly regulated or outright speculative, significantly amplify the leverage and risk-taking culture in the US. In contrast, India’s financial ecosystem, while rapidly evolving, remains largely tethered to traditional exchange platforms governed by SEBI’s regulatory oversight.
“When you look at what’s happening in the US and then look at India, our markets look so sane,” he added.
Indian regulators have consistently expressed concern over the explosion in options trading volumes. As retail participation grows, market stakeholders — exchanges, brokers, and regulators — must ensure that participants understand the risks involved. Transparency, education, and proper risk controls remain key.
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