Investor's/Trader`s Perception Toward future & option

Presented by ; Tarun Solanki

Company Introduction
Name:Finideas management solution pvt ltd Incorporated :- Jan 2nd 2010 Type :Partnership firm

Segment:-Providing education and software for

Derivative market.

Strong competitor:-

Odin,

Education segment
FinIdeas has trained more than 3000 Students in
Options Segment through various training courses. FinIdeas has conducted many corporate training

programes across

India

including

leading

stock

brokers like Share khan LTD., Ventura Securities Ltd., Fair wealth Securities, Mansukh Securities, SMC GlobalSecurities etc.

Software segment
VolHedge
Online Options Greeks Management Tool

FinGraph
Think it, Plot it

EasyRMS
Manage Risk , the Easier way

FinExcel
Export to Excel

FinTester
Test your Strategies

FIST

FinSimulator

FinBroadcaster

Software segment con

FinIdeas have launched 8 Software related

to options segment in just 4 years.

VOLHEDGE ; Volhedge is real-time option Greek

management software. It facilitates user to

manage position in different script online and hence enhances trader`s efficiency Its online utility and effective scenario analysis makes traders act at best of their ability in all market condition.

FINGRAPH;

Fingraph is graphical presentation of Indian

stock markets. It helps traders to take effective decisions by looking at graph. It

helps people to remember different price

movements which otherwise an impossible task. It also helps people tap every available trading opportunity in the market.

Other software
FinExcel
FinSimulator FinBroadcaster

FinTester
Fist

Research methodology

Problem statement
A study on investor`s perception toward Futures and Options

Objective
To know the profile of investors. To know the knowledge of investor about futures and options market. To know the awareness of various strategies like butterfly, straddle, strips and straps. To study the association between various demographic determinants and the knowledge about the financial

market.
To study the association between various demographic determinants and the awareness of various strategies..

Research Design
Sample unit :-Individual investors/traders Sample:-Resident of the surat city Sample size:-100 respondents

Sampling method:- Simple random sampling

Instrument:- Questionnaire is prepared to collect the primary data Statistical tool:-Chi square test

Benefits of the Research

We will come to know the level of knowledge of
investor about futures and options market. Provide opportunities for the company to better understand the investor/trader and find out opportunities.

Limitation of the research

Sample size taken in proportion

to the population of investor is

very small.
Respondent can be bias.

Analysis
Investor`s profile
Out of 100 people 81 male and 19 female Age :- 16 people are below 25,63 people are between 26 to 35 and 21 people are above 36 74 are married and 24 are unmarried. Qualification :- 10 High School, 43 Graduation, 30 post graduate and 30 Degree Annual income :- 18 less than 150,000, 79 between 1.5 to 3 lacks 3 more than 3 lacks

Knowledge about futures and options

Awareness of various strategies like butterfly, straddle, strip, strap etc

Which is your first preference to invest your money?

Options unnecessarily increase risk

disagree 11% strongly disagree 5%

strongly agree 13%

neutral 27% agree 44%

I like to invest in F&O when volatility is very high..

disagree 13% strongly disagree 2%

strongly agree 26%

neutral 25%

agree 34%

F&O is luck base game.

disagree 6% strongly disagree 2%

neutral 21%

strongly agree 29%

agree 42%

Chi square
H0(Null Hypothesis): There is no significant association between demographic factors and the Knowledge about the futures and options.
Age Calculated value (chi square ) Df Tabulated value Accepted / rejected 3.636 Gender 4.538 Marital status 4.917 Qualification 6.094 occupation 3.647 Annual income 3.318

4 9.488 Accept

2 5.991 Accept

2 5.991 Accept

6 14.067 Accept

4 9.488 Accept

4 9.488 Accept

 H0(Null Hypothesis): There is no significant association between demographic factors and the awareness of various strategies,

Age Calculated value (chi square ) Df Tabulated value Accepted / rejected 3.640

Gender 4.552

Marital status .617

Qualification occupation 1.592 3.304

Annual income 1.394

2 5.991 Accept

1 3.841 Reject

1 3.841 Accept

3 7.815 Accept

2 5.991 Accept

2 5.991 Accept

Findings
There are 44%people are not aware of F&O so for the company it is good opportunities to educate them, and provide advance knowledge to those who have average (30%)knowledge. Due to the high volatile market and the lack of awareness about F&O majority of the people (49%) give preferences to the cash market. The study reported that age, gender, marital status, qualification, occupation and annual income of the respondents are not having any significant relationship with the Knowledge about the financial markets. There is some significant relationship between gender and the awareness of strategies(H0 rejected). Out of 100 people only 12 people says that they are aware of different strategies like butterfly, straddle, strip.

 Open Ended : one should not invest if you don`t have proper knowledge about F&O. High volatile market and chances of losing money is more than making.