A STUDY ON THE AWARENESS LEVEL AMONG THE RETAIL INVESTORS ABOUT FUTURES MARKET AS INVESTORS RISK REDUCER

R.KARTHIKEYAN RAMACHANDRAN, KOWSALYA PALANISAMY

Abstract


The harmony in the investment world is that the futures market is a major financial hub, providing an outlet for forceful competition among buyers and sellers and, more importantly, providing a center to manage price risks. The futures market is extremely liquid, risky and complex by nature, but it can be understood if we break down how it functions. Though the derivatives market has overtaken the cash market in daily turnover and volumes we can see that the awareness among the investing public about futures and options as a tool of hedging is not much and respondents think that this topic is highly technical and complicated to understand. And a few respondents know about derivatives and are reluctant in keeping heavy sums and margins with brokers. As the study shows that most of the respondents do not want to take risk in their investment, the futures and options can be an ideal tool for minimizing their investment risk.


References


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ISSN : 2251-1555