Impact of online trading tips and social media hype on retail investor losses in future & options (F&O) markets

Abstract

This research explores the influence of online trading tips and social media hype on retail investor losses in Futures & Options (F&O) markets. As digital platforms and social media become integral to modern trading, retail investors are increasingly relying on these sources for market insights and investment strategies. However, the speculative nature of social media-driven trends and the complexities of F&O markets pose significant risks, particularly for inexperienced traders. The study investigates how online recommendations and hype affect trading behavior, decision-making, and ultimately lead to financial losses among retail investors. Through an analysis of social media platforms, trading communities, and case studies, this research aims to quantify the impact of these factors on trading outcomes. The findings underscore the need for improved investor education and regulatory oversight to protect retail traders from the adverse effects of misinformation and speculative trading behavior in volatile markets.