More than a quarter (26%) of retail traders believe that an increasingly volatile UK stock market will increase trading levels this year, according to new research from GraniteShares.

Findings from the exchange traded products (ETP) issuer also indicated that 28% of UK retail investors surveyed believe trading levels will stay the same in the event of increased domestic market volatility, with the same number expecting them to decrease.

GraniteShares’ study was conducted by independent research company Viewsbank among 1,015 UK adults who held investment portfolios in January.

When asked to select two factors that were likely to affect UK stock market volatility this year, 45% of respondents said emergency financial measures from UK Government, while 37% said a trade war with the US.

Other factors highlighted were the return of inflation (33%), risk of recession in major economies (24%), political instability in major economies (23%), the ongoing conflict in Ukraine (19%), war in the Middle East (12%), and incidents linked to climate change (7%).

“Investors see persistent market volatility in the UK as a very real phenomenon in 2025, and it is important they are prepared to both insulate from risk and capitalise on opportunity,” commented head of European retail strategy at GraniteShares, Catarina Donat Marques.

“Investing in leveraged exchange traded products that aim to deliver multiples of the daily performance of an underlying asset, can be advantageous during periods of market upswings, allowing investors to amplify gains with a smaller capital outlay.”

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