Title: Conceptualising and measuring the trading behaviour of retail investors in the derivative market - a SEM-based analysis

Authors: S.S. Mageswari; P. Sasirekha

Addresses: Department of Commerce, Avinashilingam Institute for Home Science and Higher Education for Women, Coimbatore, 641043, Tamil Nadu, India ' Department of Commerce, Avinashilingam Institute for Home Science and Higher Education for Women, Coimbatore, 641043, Tamil Nadu, India

Abstract: Capital markets' derivative markets have recently experienced stronger growth. In recent years, the financial markets derivative sector has grown more quickly. Investors' attention is shifting away from the stock market and towards the futures market. Individual investors are becoming more active in the derivatives market. While trading, psychological factors will lead investors to make impulsive and emotional judgements. This study tracks how attitude, personality traits and behavioural biases shape their investment intention and analyses the moderating role of financial literacy and self-efficacy on the derivative market. Snowball technique was adopted to collect the primary data from 125 investors from Coimbatore city. Mean and standard deviation, Kruskal Wallis test and structural equational model were used for analysing the collected data. The study concluded that attitude, personality traits and behavioural biases significantly influence investment intention and the moderating effect of financial literacy is more than self-efficacy.

Keywords: attitude; behavioural biases; derivative market; financial literacy; Indian retail investors; personality traits; self-efficacy.

DOI: 10.1504/IJICBM.2026.151833

International Journal of Indian Culture and Business Management, 2026 Vol.37 No.2, pp.229 - 248

Received: 14 Jan 2024
Accepted: 01 Feb 2024
Published online: 23 Feb 2026 *

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