Retail Customers

Definition ∞ Retail customers are individuals who purchase goods or services for their own personal use, rather than for resale or business purposes. In financial markets, this term typically refers to non-professional investors who trade securities or digital assets in smaller quantities. They often lack the sophisticated knowledge or capital of institutional investors. Their trading activities are generally subject to consumer protection regulations. Understanding the characteristics of retail customers is crucial for financial service providers and market regulators.
Context ∞ The involvement of retail customers in cryptocurrency markets is a subject of considerable attention, particularly concerning their trading behaviors and susceptibility to market volatility. Current discussions often highlight the surge in retail participation during periods of high asset appreciation and the risks associated with less informed investment decisions. Key debates involve the adequacy of consumer protection measures and the role of exchanges in safeguarding retail investors. Future developments to monitor include regulatory efforts to enhance financial literacy among retail participants and the implementation of measures to prevent predatory practices.