Volume : 4, Issue : 2, February - 2015

Investor Perception towards Trading In Equity Derivative Market: A Study at Angel Broking Pvt. Ltd., Mysore City

Dr. Veena K. P. , Dr. C. Mahadeva Murthy

Abstract :

<p>The emergence and growth of the market for derivative instruments can be traced back to the willingness of riskaverse economic agents to guard themselves against uncertainties arising out of fluctuations in asset price. Derivative is a product whose value is derived from the value of an underlying asset. The underlying asset can be equity, forex, commodity or any other asset. Derivatives are very important financial instrument for risk management as they allow risks to be separated and traded. Derivatives are used to shift risk and act as a form of insurance. The most commonly used derivatives contracts are forward, future and options. A derivative does not have any physical existence but emerges out of a contract between two parties. These underlying assets may be shares, debentures, tangible commodities, currencies or short term or long term financial securities etc. This Study mainly focused, the Demographic profile of the Respondent, and Motivational Factors Infulenceing investing in equity derivatives,and problems faced by the investors while doing tradeing activity in Equity Derivative Market.The study has conducted as primary data, survey through issued structured questionnaire targeting 60 respondents Angel Broking Pvt Ltd. situated in Mysore City. Finally Equity Derivative market is systematic risk is caused by factors external to the particular company and uncontrollable by the company. The systematic risk affects the market as well as stock market or equity financial derivative market</p>