Day trading and stock price volatility

被引:4
作者
Kyröläinen P.
机构
[1] University of Oulu,Faculty of Economics and Business Administration
关键词
Day trading; Investor behavior; Noise trading; Trading activity; Volatility;
D O I
10.1007/s12197-007-9006-2
中图分类号
学科分类号
摘要
When an investor buys and sells the same stock on the same day, he is said to have made a day trade. Using the trading records of Finnish traders, this paper examines whether day trading is related to volatility of stock prices. I find a strong positive time-series relation between the number of day trades by individual investors and intraday volatility among heavily day traded stocks. This effect is robust after controlling for a previously documented volume-volatility relation. The result suggests that the joint hypothesis of price pressure and volatility induced day trading dominates the liquidity effects of day trading. © Springer Science & Business Media, LLC 2007.
引用
收藏
页码:75 / 89
页数:14
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