Being equipped with a unique high-frequency dataset that enables us to precisely identify algorithmic trading (i.e. computergenerated) activity, we provide strong evidence that algorithmic trading does not exceedingly increases volatility, at least not more than human traders do. Our empirical analyses cover several potential reasons why algorithmic trading could increase volatility. For exampl...

We seek to develop a novel asset pricing model with heterogeneous traders. Fundamental traders expect that asset prices converge towards their intrinsic values, whereas chart traders rely on both price and volume signals to determine their orders. To be precise, the larger the trading volume, the more they believe in the persistence of the current price trend. Simulations of our nonlinear deter...

Cooperatives are associations of people who have the same goal, namely to improve standard living and welfare their members because, in general, cooperative a weak economic level. One type is Pasar Merchant Cooperative (KOPPAS), which whose consist traditional markets traders want develop business. The purpose study was determine effect KOPPAS on Capital North Cipete Traditional Traders. resear...

Highly Pathogenic Avian Influenza (HPAI) has been prevalent in Indonesia since 2003 causing major losses to poultry production and human deaths. Live bird markets are considered high risk areas due to the density of large numbers of mixed poultry species of unknown disease status. Understanding trader knowledge and perceptions of HPAI and biosecurity is critical to reducing transmission risk an...

Asset market experiments are analyzed by distinguishing, ex post facto, participants who trade on fundamentals versus those who trade on momentum (i.e., buying when price is rising). The distinction is made when prices are above fundamental value, so that (in each period) those who have more offers than bids (net offerers) are classified as fundamentalists while those who have more bids than of...

Trading is widely recognized as a stressful profession. Taking decisions under stress negatively affects both, the finances and the health of the trader. Providing support to increase the awareness of traders on their real levels of stress could significantly improve their performance and well-being. This paper surveys technology available that can be considered to provide such level of support...

If traders in prediction markets have state-dependent preferences so that marginal utility of money varies across states, prices in a Rational Expectation equilibrium are quantile statistics of distributions that derive from both the distribution of realized signals, and the distribution of state-dependence parameters. As a result, even with a common prior and regardless of whether prices revea...

The paper analyses a simplified version of a Glosten-Milgrom style specialist security trading model with trade-timing. In a setting where traders are differentially informed, if the best-informed investors have a sufficiently strong or weak impact on prices then the investors with the strongest impact on prices delay their investment strategically, pretending to be the low-impact types. JEL Cl...

Milton Friedman argued that irrational traders will consistently lose money, won’t survive and, therefore, cannot influence long run equilibrium asset prices. Since his work, survival and price impact have been assumed to be the same. In this paper, we demonstrate that survival and price impact are two independent concepts. The price impact of irrational traders does not rely on their long-run ...