التفاصيل البيبلوغرافية
| العنوان: |
The disposition effect of fast traders in the Taiwan futures market. |
| المؤلفون: |
Huang, Zi-Huang1 (AUTHOR), Tsai, Shih-Chuan2 (AUTHOR) chuant@ntnu.edu.tw |
| المصدر: |
Applied Economics Letters. Jan2025, p1-5. 5p. |
| مصطلحات موضوعية: |
*INVESTMENT policy, *PROFITABILITY, *FUTURES market, *PROFESSIONAL employees, COGNITIVE bias, PROFESSIONALISM |
| مستخلص: |
This study examines the disposition effect among fast traders (FTs), a group whose trading behaviors closely align with those of high-frequency traders (HFTs) in Taiwan’s futures market. Leveraging a unique dataset from the Taiwan Futures Exchange (TAIFEX), we identify FTs and categorize them into institutional and individual traders to explore differences in their trading behaviors and profitability. The findings reveal that FTs generally demonstrate significantly lower disposition effects compared to non-FTs, and their trading activities result in higher average profits. A more detailed analysis highlights that individual traders—both FTs and non-FTs—tend to exhibit more pronounced disposition effects than their institutional counterparts. This behavioral disparity underscores the role of professionalism and experience in mitigating cognitive biases. Among FTs, institutional traders are notably more professional, employing disciplined strategies and making superior trading decisions. On the other hand, individual non-FTs neither exhibit trading behaviors akin to individual FTs nor achieve comparable profits. They display the most significant disposition effects and the poorest performance overall. Meanwhile, institutional non-FTs, with their diverse investment strategies, are less inclined to hastily liquidate profitable positions. Additionally, FTs demonstrate adaptive behavior by reducing their disposition effects and risk-taking tendencies following periods of profit. The findings provide robust support for the conclusion that lower disposition effects are indicative of greater professionalism. Furthermore, the research highlights a negative correlation between disposition effects and profitability, offering valuable insights for both practitioners and policymakers in understanding trader behavior and enhancing market efficiency. [ABSTRACT FROM AUTHOR] |
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| قاعدة البيانات: |
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