Retail Frenzy 2.0

Retail investors have returned to the market with high conviction and leverage, now accounting for 20% of all trading flow despite owning only 10% of the equity market.

Key Takeaways

• 1.Retail trading activity now drives approximately 20% of total market trading volume despite owning only ~10% of total market value.
• 2.Retail flow is highly fragmented and opaque; over 80% is internalized by wholesalers off-exchange rather than hitting lit markets.
• 3.Retail investors act as 'marginal price-setters' by aggressively chasing momentum and 'buying the dip' with high leverage.

Table of Contents

• What could go wrong...?
• Chasing momentum
• Small owners but big impact
• The brokers
• The invisible flow
• Where they trade
• Leverage is back
• Learn to love leverage
• What retail wants (you already know)
• Retail results reaction
• Buy the dip even harder
• The consequences: volatility & fragility
• Fun Fed facts

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