Trading Behavior of Retail Investors in Derivatives Markets: Evidence from Mini Options

2021 ◽  
pp. 106250
Author(s):  
Yubin Li ◽  
Chen Zhao ◽  
Zhaodong (Ken) Zhong
Keyword(s):  
Trading Behavior ◽  
Retail Investors ◽  
Derivatives Markets

scholarly journals Factors Influencing Retail Investor’s Trading Behavior in Indian Equity Market

2015 ◽  
Vol 10 (11) ◽  
pp. 206
Author(s):  
Sashikala P. ◽  
Girish G. P.
Keyword(s):  
Financial Services ◽  
Equity Market ◽  
Primary Data ◽  
Age Group ◽  
Trading Behavior ◽  
Developing Nation ◽  
Factors Influencing ◽  
Retail Investors ◽  
Online Trading ◽  
Current Price

In this study we identify the factors which influence and affect retail investor’s trading behavior in Indian equity market. To identify the factors, we use primary data collected from retail investors belonging to different age group, professional backgrounds and demographics of India. The results of the study suggest that factors like broker’s advice, personal analysis, current price of the equity stock, financial analyst’s recommendations, inclination towards online trading; investor’s confidence in advice given by his/her financial advisor plays a major role in influencing and affecting trading behavior of retail investors. The result of the study gives insights to firms offering financial services in developing nation like India to keep these factors in mind while offering products/services or in their marketing campaigns while targeting retail investors of Indian equity market.

Role of Financial and Non-Financial Information in Shaping Trading Behavior: A Retail Investor’s Perspective

2020 ◽  
Vol 38 (3) ◽  
Author(s):  
Muhammad Naveed ◽  
Muzammal Ilyas Sindhu ◽  
Shoaib Ali
Keyword(s):  
Stock Exchange ◽  
Investment Decision ◽  
Investment Decisions ◽  
Financial Information ◽  
Equation Modeling ◽  
Trading Behavior ◽  
Stock Trading ◽  
Retail Investors ◽  
Retail Investor

This study aims to examine the role of information disclosure in determining retail investor trading behavior. The approach of the study is deductive, while the quantitative strategy is adopted by using a survey questionnaire for data collection. Primary data was collected from 386 retail investors actively involved in stock trading at Pakistan Stock Exchange (PSX). Theoretical underpinning is based on the signaling theory. Covariance based structural equation modeling (SEM) has carried out to statistically examine the strength of the proposed model.The key findings of this study exhibit that on average, retail investors invest in firms with detailed financial and non-financial disclosures. The result also shows the intervening influence of perceived corporate image on retail investor decisions. Categorically, the finding of this study indicates that improved financial and non-financial disclosure practices support retail Investors to make sound stock investment decisions. The proposed model is novel to insight into the retail investor investment decision in the context of Pakistan.The results should be of interest to firms reporting detail and cohesive non-financial information with the presumption that it is requisite to influence the investor's investment decision making. The result reflects the mismatch between retail Investors' preferences and firm's information reporting practices, which in turn affect their appeal toward investment decisions. This study contributes to the comprehension of the information needs of retail investors and how it hailed their trading behavior.  The findings of the study remain robust to firms listed on a stock exchange and retail Investor involved in stock trading.

Determinants of Investment Trading Behaviour in Pakistan

2018 ◽  
Vol 2 (1) ◽  
pp. 78
Author(s):  
Vikesh Kumar Chawla ◽  
Niaz Ahmed Bhutto ◽  
Suresh Kumar Rajput
Keyword(s):  
Educational Status ◽  
Individual Investors ◽  
Personal Factors ◽  
Trading Behavior ◽  
Primary Methods ◽  
Self Confidence ◽  
Retail Investors ◽  
The Individual ◽  
Portfolio Size ◽  
Great Knowledge

This study aims to investigate the individual or retail investors investment behavior to know that individual demographics and financial factors such as gender, age, educational status, income, and investment levels determine their investment trading behavior amongst three domains namely fundamental, market events and personal factors. We have found that demographic characteristic such as marital status does not play any significant role in determining their investment trading behavior. The structured survey is used to collect data through a personal administration of individual investors belonging to PSX and brokerage firm. Further we use ANOVA and multiple regression to analyze the data collected from primary methods. The evidence suggests that retail investors’ self-confidence is function of both expected and unexpected changes in the market and personal factors which shape the retail investors trading behaviors. The self-confidence and portfolio size are positively related which means that over confident individual investors believe that they have great knowledge and skills. This relationship would help them to perform better than others as over confidence leads them to hold big portfolios

An Internal Control Weakness: FERC and Investor's Trading Behavior

2017 ◽  
Vol 26 (3) ◽  
pp. 175-217
Author(s):  
Eunhye Jo ◽  
Haewon Moon
Keyword(s):  
Internal Control ◽  
Trading Behavior

Are Indian Investors Return Chasers? An Anatomy of their Trading Behavior

GIS Business ◽  
2016 ◽  
Vol 11 (3) ◽  
pp. 32-44
Author(s):  
Martin Bernard ◽  
Malabika Deo
Keyword(s):  
Equity Returns ◽  
Trading Behavior ◽  
Momentum Effect ◽  
Momentum Strategy ◽  
Price Momentum ◽  
Momentum Profits ◽  
Indian Context ◽  
Time Period ◽  
Monthly Return ◽  
Indian Stock Market

Momentum has remained an unanswered anomaly in finance literature. Researchers have pointed out two arguments, whether the source of prior return anomalies are rational or behavioral. In this paper, we examined return chasing tendency investors and the profitability of probable price momentum strategy in Indian equity market using the monthly return data of equities represented in BSE-500 index encompassing the time period from July 2004 to Jun 2014. Study is an attempt to analyze momentum effect before, during and after the financial crisis of 2007–2009 to check whether investors continue to follow the same strategy during crisis or their behavior undergoes any change. Also study examined the adequacy of rational CAPM models to explain momentum profits. The result evidenced a strong presence of economically and statistically significant momentum profit in Indian stock market equity returns. Therefore return chasing tendency of Indian investors is found to be persistent in the intermediate horizon in Indian context. Closer observation of the results reveals that, Indian investors are winners chasers rather than investor in past losers. Study also confirmed that investors sentiments are volatile according to general market environment and inadequacy of rationalist equilibrium model to explain momentum profits.

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