Effect of agri Commodity Traders Attitude and Perception on Their Trading decision – A Study

The traders dealing with farm commodities often experience highly volatile situations in the market. More particularly, the recent COVID-19 pandemic has created a more chaotic situation due to the inherent uncertainty, significantly affecting traders' perception of commodity markets. Several theories dealing with security or commodity markets are based on the view that investors behave rationally, but, in many practical cases, it needs to be found faithful. As a result, a contemporary area of research has emerged that considers the impact of demographic factors on investors' decision-making. Hence, it is imperative to explore the effect of traders' demographic characteristics on their overall trading experience in the commodity futures market. Given the above, the current study intends to measure the direct and interactive effect of demographic factors, awareness, motivating factors, attitude and perception of the traders on their decision towards trading in commodity futures and overall trading experience. The study has confirmed that the traders' monthly income has shown a significant main effect on their awareness, which has shown a significant main effect on their interest in trading in commodity futures. Also, their understanding has significantly affected their decision to invest in commodity futures and overall trading experience. At the same time, the attitude and perception also have shown a significant interactive and main effect on their decision and overall experience. Hence, the commodity exchanges in India should be committed to informing, educating, and training interested people to learn and engage in trading commodity futures.