Author: | Harris, J. H. Schultz, P. H. |
Title: | The trading profits of SOES bandits. |
Journal: | Journal of Financial Economics
1998 : OCT, VOL. 50: 1, 39-62 |
Index terms: | FINANCIAL MARKET TRADING PROFIT INVESTORS |
Freeterms: | NASDAQ |
Language: | eng |
Abstract: | The authors examine SOES bandits, individual investors who use Nasdaq's small order execution system for day trading. Bandits usually establish a position before most market-makers have updated their quotes, and lay off the position of favorable orices through instinet or select net. They trade profitably with market-makers despite having less information. Bandits keep the profits and bear the losses from their trade. Thus they have greater incentives to trade well than the employees of market-making firms. |
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