2009•Journal of the Association for Information SystemsOpen access

Understanding Online Traders: Trading and Performance in Common Stock Investment

Yu‐En Lin, Y. C. Elena Kang, Chiung-Lin Chiu

Abstract

This paper analyzed the effect of online trading on investors’ trading behavior based on investors’ trading data provided by a major security firm in Taiwan. Our empirical findings are summarized as follows: 1. Male and the younger traders preferred online trading. Investors who had better gross return tend to switching to online trading mechanism. 2. Even though investors traded more actively after going online, their trade performance is not negatively affected. 3. Online trading does not significantly increase information-triggered trades (speculative trading), even though there is more access to information after going online. 4. Finally, the order execution efficiency of online trading is better than phone-based trading.

Open-access reader

About this research paper

What this paper is about

Why it matters

OpenAlex reports 1 citations for this work. Citation counts describe recorded attention and do not establish research quality.

Key contribution

A contribution statement is not available in the OpenAlex record.

Method / approach

Method details are not available in the OpenAlex metadata.

Main findings

Findings are not separately available in the OpenAlex metadata.

Limitations

Limitations are not available in the OpenAlex metadata.

Applications

Application details are not available in the OpenAlex metadata.

Available abstract

Key concepts: Trading turret, Alternative trading system, Open outcry, Algorithmic trading, Electronic trading, Business, High-frequency trading, Trading strategy