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Risk management of private investors in the securities market using online trading systems


Sokolovskiy M.V., Tselikhina I.V.
(about the authors)

Sokolovskiy Mikhail Vladimirovich – (The Kemerovo State University)

Tselikhina Irina Vladimirovna – (The Kemerovo State University)

Published in:
Russian Journal of Entrepreneurship
– Volume 19, Number 12 (December 2018)

JEL classification: G10, G23, G24, G32

Keywords: online trading, private investment on the stock exchange, risk and profitability of on-line operations with securities, risk assessment, risk management


Citation:
Sokolovskiy M.V., Tselikhina I.V. (2018). Risk management of private investors in the securities market using online trading systems. Russian Journal of Entrepreneurship, 19(12), 4133-4142. doi: 10.18334/rp.19.12.39626


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Abstract:

The Russian stock market, despite a long history of formation, still remains in a developing state. The volume of operations with securities is concentrated in a narrow circle of enterprises, the number of private investors is also small. In fact, the entire volume of work on the stock market has been transferred to the format of online trading, the last "pits" closed a few years ago. This trend allows us to highlight some prospects for the development of the stock exchange, including the increase in private investors and the possibility of trading foreign securities, but online transactions with securities are accompanied by quite specific risks. Private investors are focused on speculative operations, long-term investments are unpopular. All above mentioned factors increase risks and create a need for risk management. The article attempts to analyze the risk management system of virtual work of Internet brokers on the stock exchange. The emphasis is shifted to private investment, as this unit is one of the most promising for the development of the securities market at the present stage.








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