Derivatives are primarily concerned with managing risk rather than eliminating it. There are a variety of derivative instruments available, such as index futures, stock futures, commodity futures, and stock options. Interest rate futures, interest rate futures, and currency options are also available on these exchanges. The purpose of this study is to gain insight into the perceptions of traders in the commodity derivatives market, with particular emphasis on the Rayalaseema region in Andhra Pradesh. The main focus of the study is to identify the factors that influence traders' perceptions, as well as gain insight relating to traders experience, commodities trading, and the level of risk that traders are willing to take. After conducting a factors analysis and path analysis, it was found that the influence of commodity-related factors on traders' perceptions, market and exchange-related factors, and risk and return factors had a positive impact on traders' perceptions.

KEYWORDS: Traders Perception, Commodity, Derivative Markets, Index Futures, Stock Futures.