Pragmatic Trading Behaviour of Retail Investors in the Derivative Market

In recent decades, investing has become an essential tool in everyone’s life. The stock market is where many people bet their stocks to make money. Over time, a new concept has emerged that significantly affected many investors. As a result, traditional investors have begun to focus more on the futures market than the stock market. The study tracks how investors’ attitudes to risk and money shape their trading decisions and analyses the moderating effect of financial literacy and self-efficacy in the derivatives market. Snowball sampling technique was used to collect data from 125 derivative investors in the city of Coimbatore and the collected data was analysed using Mean Score ranking, Factor Analysis, Path Analysis and Structural Equational Model. The study concluded that the Risk and Money attitudes of retail investors positively affect trading behaviour and moderating variables Financial Literacy and self-efficacy directly influence the attitude of the investors which affects trading in the Derivative Market.