Do Rational Traders Frenzy?
نویسندگان
چکیده
منابع مشابه
Do retail traders suffer from high frequency traders?
Using a change in regulatory fees in Canada in April 2012 that affected algorithmic quoting activities, we analyze the impact of high frequency quoting and trading on market quality, trader behavior, and trading costs and profits. Following the change, algorithmic message traffic, i.e. the number of orders, trades, and order cancellations, dropped by 30% and the bid-ask spread rose by 9%. Using...
متن کاملSo What Orders Do Informed Traders Use ? ∗
We present a simple, Glosten-Milgrom type equilibrium model to analyze the decision of informed traders on whether to use limit or market orders. We show that even after incorporating an order’s price impact, not only may informed traders prefer to use limit orders, but the probability that they submit limit orders can be so high that limit orders convey more information than market orders. We ...
متن کاملFrenzy: A Platform for Friendsourcing
Although micro-task crowdwork was popularized by the Mechanical Turk (MTurk) labor-market platform, it is useful in many other contexts and communities as well. Unfortunately, several MTurk design choices, such as worker anonymity and isolation, are problematic in other environments. This paper introduces Frenzy, a platform for friendsourcing. Frenzy helps people who are closely connected in a ...
متن کاملDo Professional Traders Exhibit Myopic Loss Aversion? An Experimental Analysis
Two behavioral concepts, loss aversion and mental accounting, have recently been combined to provide a theoretical explanation of the equity premium puzzle. Recent experimental evidence suggests that undergraduate students’ behavior is consistent with this “myopic loss aversion” conjecture. Our suspicion is that, much like certain anomalies in the realm of riskless decisions, these behavioral t...
متن کاملDo trend traders tame the chaos ? - Feedback provides stability .
This paper concentrates on stability properties of heterogeneous agent models which include trend traders. So far, papers have only described the models’ behaviour in the very long run. I propose an explanation for the phenomenon that computer simulations of these models regularly converge if certain parameter constellations are used. In particular, insights of physics concerning time-delayed f...
متن کاملذخیره در منابع من
با ذخیره ی این منبع در منابع من، دسترسی به آن را برای استفاده های بعدی آسان تر کنید
ژورنال
عنوان ژورنال: SSRN Electronic Journal
سال: 1997
ISSN: 1556-5068
DOI: 10.2139/ssrn.39147