Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/73554
Authors: 
Stöckl, Thomas
Kirchler, Michael
Year of Publication: 
2010
Series/Report no.: 
Working Papers in Economics and Statistics 2010-09
Abstract: 
We study the use of trading strategies and their 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
Subjects: 
Asymmetric information
liquidity
trading strategies
limit order markets
experiment
especially at the beginning of a period and when the change in their fundamental information is large. The average informed lose most with market orders and their losses are highest at the beginning of a period when they can be exploited by insiders. Uninformed traders act as liquidity providers. They place the highest number of limit orders and end up with the market return.
JEL: 
G12
G14
D03
Document Type: 
Working Paper

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