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'Calling US a gambling society wouldn't be unfair': Nithin Kamath on India-America trading comparisons
Zerodha co-founder Nithin Kamath criticised comparisons between India's and the US's options trading volume, calling them misleading.
Zerodha co-founder Nithin Kamath has commented on the ongoing debate about India’s options trading volume, claiming that the comparison between India and the United States is not only flawed but also misleading.
Kamath took a direct jab at America’s gambling culture and stated, “Calling the US a gambling society wouldn’t be unfair.” He pointed out a recent $210 million wager on whether Ukrainian President Volodymyr Zelensky would wear a suit at the NATO summit.
“Gambling runs deep in American culture. From the stock market to sports, casinos, events, lotteries, prediction markets, and crypto, you can bet on anything," he added.
In a lengthy post on social media, Kamath argued that Indian markets are significantly less leveraged than their US counterparts. “It’s ridiculous to see people comparing options trading volumes in India and the US and claiming that we’re overleveraged. So this constant narrative that we’re somehow dangerously overleveraged, just because of the number of options contracts traded, feels… well, misguided,” he wrote.
He added that India’s financial markets are about 15–20 years behind in terms of maturity. “In the US, the margin funding market (the equivalent of MTF in India) recently crossed $1 trillion. In India, it’s still under $10 billion—just 1% of that,” he wrote.
The post earned praise online from trade enthusiasts. "Spot on about the leverage comparison being misleading. We're still building basic infrastructure while US has mature options markets for decades," said one of them.
Another added, "Comparing India to the US in leverage is like bringing a water pistol to a wildfire!"
"Interesting point. Also, India's options market skews retail, while US leans institutional, so leverage tolerance differs," wrote a third user.
