( ISSN 2277 - 9809 (online) ISSN 2348 - 9359 (Print) ) New DOI : 10.32804/IRJMSH

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COMPARATIVE STUDY OF DERIVATIVES TRADING RISK MANAGEMENT OF TRADERS FROM AURANGABAD AND JALNA CITY

    2 Author(s):  DR. MOHAN RODE , ABHIJEET BIRARI

Vol -  7, Issue- 2 ,         Page(s) : 57 - 67  (2016 ) DOI : https://doi.org/10.32804/IRJMSH

Abstract

The study is based on comparative analysis of derivatives traders in Aurangabad and Jalna city to understand their style of trading, duration of trading, preference of trading, investment, frequency of trading, base of trading, brokerage, awareness about trading charges, volume of trading, success and failure ratio, risk-return profile, diversification strategy, profit/loss etc. Primary data through questionnaire was collected by taking 60 as sample sizeand analyzed using various statistical and research tools.Chi square and T-tests were used to analyze whether there is a difference in duration of trading, amount invested, frequency of trading and basis of trading in these two cities.It was found thatthere was a significant difference in amount invested and frequency of trading and no difference in duration and base of trading. Moreover it was observed that futures trading was more preferred, frequency of trading was high and more than 95% of the traders lost money in both cities. It was suggested that traders should risk only that much amount which they can afford to lose, frequency of trading should be minimal, they should always trade with stoploss, psychological component and money management should be stressed upon and they should not blindly trust third party calls, instead do analysis and trade.

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