Retail Trading

Retail trading involves trading done by individual investors who buy or sell securities for their personal account. Retail investors buy in smaller quantities as compared to institutional investors and hence cannot alter the cost of the security in a big way. However, the use of online trading and better access to financial information has increased the number of retail investors. As they invest a small amount in trading, they generally invest in small cap companies. Additionally, they generally invest in stocks, bonds, options, and futures and they have very minimal access to IPOs.