Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
931712 | Journal of Behavioral and Experimental Finance | 2014 | 13 Pages |
Abstract
We study trading behavior and its profitability in experimental asset markets with asymmetrically informed traders. We find that insiders make most of their profits from trades which are initiated by their limit orders. The average informed lose most with market orders and their losses are highest when they pick up insiders’ limit orders. Uninformed traders act as liquidity providers. They place the highest number of limit orders and end up with the market return.
Related Topics
Social Sciences and Humanities
Economics, Econometrics and Finance
Economics, Econometrics and Finance (General)
Authors
Thomas Stöckl, Michael Kirchler,