HON Tai Yuen, KurtKurtHON Tai Yuen2016-06-112016-06-112015ELK Asia Pacific Journal of Finance and Risk Management, 2015, vol. 6(2), pp. 27-43.0976-71852349-2325http://hdl.handle.net/20.500.11861/2611Open access<br> This article was published in "ELK Asia Pacific Journal of Finance and Risk Management" in Vol. 6, Issue 2, p. 27-43.Includes bibliographical references.17 p.This paper, using a survey, makes an attempt to find out the attitude of small investors towards financial derivatives in Hong Kong and their investing pattern on different financial derivatives. The observation period for the current survey cover the most turbulent period of Euro Zone Sovereign Debt crisis of January 2013-January 2014 which happened in Hong Kong. The survey was conducted from 21 January 2014 to 21 March 2014. A non-probability sampling (snowball method) was applied to select individuals aged 18 or above from the population of Hong Kong. The results indicate that small investors mostly tend to trade warrants (24% of total) and stock options (23% of total). The results further indicate that 22.7% and 21.3% of the respondents respectively considered overall past performance seen from a historical perspective and recommendations, advice, and forecast from professional investors were the decisive factors which would affect their decision-making while investing in the financial derivatives. At the same time, about 83.3% of the respondents can be found in less than 10% portfolio weight in derivatives products, they were influenced by Euro Zone Sovereign Debt crisis. This result unveils that the small investors put less investment in derivatives markets.enCross TabulationInvestment BehaviorSmall InvestorsDerivatives MarketsHong KongInvestments China Hong Kong.Derivative securities China Hong Kong.Peer Reviewed Journal Article10.16962/EAPJFRM/issn.2349-2325/2014