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VOL. 8, ISSUE 1 (2026)
Financial derivatives: Awareness and participation of retail investors in Bihar
Authors
Nabin Kumar Choudhary
Abstract
The Indian capital market has witnessed a paradigm shift with the rapid
expansion of the derivatives segment. While institutional participation has
historically dominated this space, recent years have seen a surge in retail
engagement, driven by digitalization and low brokerage barriers. However, this
growth is geographically uneven. This study investigates the level of
awareness, perception, and trading behaviour of retail investors in Bihar, a
region characterized by a transitioning economy and traditionally conservative
investment habits. Utilizing primary data from 150 investor across urban and
semi-urban clusters in Bihar, the research identifies a significant
“knowledge-participation gap”. The findings reveal that while awareness of
futures and options (F&O) is rising, technical understanding remains low,
leading to high loss ratios. The study recommends targeted vernacular financial
education to bridge this gap and ensure sustainable capital market growth in
Eastern India.
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Pages:1-3
How to cite this article:
Nabin Kumar Choudhary "Financial derivatives: Awareness and participation of retail investors in Bihar". International Journal of Finance and Commerce, Vol 8, Issue 1, 2026, Pages 1-3
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