Wirtschaftswissenschaftliche Fakultät der Leibniz Universität Hannover

2024 / 2023 / 2022 / 2021 / 2020 / 2019 / ältere Diskussionspapiere anzeigen

Diskussionspapiere - Hannover Economic Papers (HEP)

Trader see, trader do: How do (small) FX traders react to large counterparties' trades?

Autor: Lukas Menkhoff and Maik Schmeling
Nummer: 415, Mar 2009, pp. 47
JEL-Class: G12, G15, D82, F31

Abstract:
We show that information about the counterparty of a trade affects the future trading decisions of individual traders. The effect is such that traders tend to reverse their order flow in line with the better-informed counterparties. Informed traders primarily incorporate their own private as well as publicly available information into prices, whereas uninformed traders mainly magnify the effect of the informed. This pattern of interaction among traders extends to different order types: traders treat their own and others’ market orders as more informative than limit orders.

Zusammenfassung:
/N

Diskussionspapier als PDF-Datei herunterladen
BibTeX-Datensatz herunterladen

| ©2004 - 2024 Wirtschaftswissenschaftliche Fakultät, letzte Änderung am 2014-09-02 11:55:06