Investors Perception Towards Trading in Futures & Options

Purpose & Motivation: We have attempted to ascertain and determine investors’ perceptions towards the derivatives market in this research report. An investor may have many questions before making an investment, such as what are the available investment avenues? Where should I put my money? What should I think about? And so forth. Therefore, financial literacy is of utmost importance. It would therefore be intriguing to view an investment from each of these perspectives. Thus, all of these important considerations are made when starting the current project. Problem: There is a lack of understanding and awareness among investors regarding the derivative market. Investors always make investments with the hope of earning a return on their investments. However, there is always a high risk associated with the investment in the derivatives, which is mostly either not recognized or underestimated by the new investors/traders who are mostly new and are at a beginner’s stage in the field. Approach: Derivatives products and trading are developing more quickly these days. On the other hand, the derivatives component is typically employed for hedging as well as trading. Additionally, look for a relationship between the money earned and the money spent on derivatives. We try to find how investors feel about the derivatives instrument and with what perception they enter the derivatives market. Result: We will try to explore about and get familiar with investors psychology concerning the investment in derivatives instrument and the issues they face due to illiteracy in the beginning stages of the derivatives market. This study will clarify and throw the light on the basic and general perception of investors on derivatives investing.