The Effects Of Technology Driven Information Categories On Performance In Electronic Trading Markets

02/24/2020
by   Jim Samuel, et al.
0

Electronic trading markets have evolved rapidly with continued adoption of new technologies and growing in-formation acquisition and processing capabilities. Traditional perspectives on trading performance adopted a mono-lithic view of information. Past research and practitioner heuristics posit that adopting new technologies and incorpo-rating more information should increase price efficiency and trading performance uniformity. However, along with technological change, information dynamics have evolved significantly resulting in immense growth in data volumes, and increased complexity of information categories. The present research explores behavioral trading performance under varying information category conditions and argues that unfettered technological developments and information consumption will not necessarily lead to consistent improvement in uniformity of trading performance. In this study, we employ an artificial stock market based economic experiment to examine the role of technol-ogy driven information categories in influencing trading decisions in electronic markets. Financial electronic markets are used as an information-rich mature markets representation to analyze information category driven trading perfor-mance. The results show that a variation of information categories can influence trading performance. The findings provide a basis to better understand behavioral phenomena in electronic markets and can be used to explain anomalies as well as to manage trading performance in electronic markets.

READ FULL TEXT

page 1

page 2

page 3

page 4

research
05/19/2020

On the Bound of Cumulative Return in Trading Series and the Verification Using Technical Trading Rules

Although there is a wide use of technical trading rules in stock markets...
research
10/22/2008

Le trading algorithmique

The algorithmic trading comes from digitalisation of the processing of t...
research
02/07/2022

NFT Wash Trading: Quantifying suspicious behaviour in NFT markets

The smart contract-based markets for non-fungible tokens (NFTs) on the E...
research
10/16/2022

Biased or Limited: Modeling Sub-Rational Human Investors in Financial Markets

Multi-agent market simulation is an effective tool to investigate the im...
research
02/12/2023

NFTDisk: Visual Detection of Wash Trading in NFT Markets

With the growing popularity of Non-Fungible Tokens (NFT), a new type of ...
research
12/28/2017

Platform Criminalism: The 'Last-Mile' Geography of the Darknet Market Supply Chain

Does recent growth of darknet markets signify a slow reorganisation of t...
research
04/17/2023

Trading green bonds using distributed ledger technology

The promising markets for voluntary carbon credits are faced with crippl...

Please sign up or login with your details

Forgot password? Click here to reset