Sensibull, a startup in the stock trading space has received funding of Rs 2.5 crore from Rainmatter, a fintech fund and incubator managed by Zerodha.
Sensibull claims its major objective is to help the small investors make money in the stock market through the options trading route. In the current scenario, hardly any small investor stands to make significant gains in trades.
According to the Founder and CEO of Sensibull, Nithin Kamath, options trading is gaining traction in many exchanges and one may see commodities also joining the options mode or trading.
“Options trading today contributes to over 70% of all trading on NSE and will soon be available on all commodities as well. Options are complex but awesome instruments to trade. Most people trading options think of it is as a lottery, and hence end up losing money fast. Sensibull is attempting to be that platform that can help the retail trader in his quest to profitability while trading options,” he says.
The startup feels it has the formula to make the retail investor make money through options trading instead of losing. In their view, there is a vacuum in the methodology being adopted by the traders in options; they feel the same strategy employed in equity trading which is why it is not very successful and they will be able to turn this around. There is no independent platform that helps the investors as well.
In addition to making the options trading business profitable for the investors, Sensibull also intends offering wealth management services for high net worth individuals (HNI)
The strategy they may bring to the table would be on the lines of a hand-holding the investor through the entire deal, giving insights on the options available on sale and then help when they wish to make a sell as well. It would be a holistic support to the investor.
At a time when the Indian stock market indices are touching record highs, it is no surprise there are firms looking for opportunities and stock trading has remained by and large with traditional players and the small investors have always remained on the margins, due to various reasons. If a startup like Sensibull enters this space and helps the retail investor make some money it augurs well for the market.