Title: Brunt of technology in stock trading - empirical evaluation of movement in trading modes

Authors: Janani Ravinagarajan; Sharon Sophia

Addresses: Vellore Institute of Technology (VIT), Chennai, India ' Vellore Institute of Technology (VIT), Chennai, India

Abstract: Technical indicators use volume patterns to confirm trends, momentum, return, and volatility of the market. Assessing the conviction behind market advances and declines based on exchange-defined differences in trading mode is a fascinating way to ascertain market insights. In this context, the study is novel and structured to add literature in two aspects - the study evaluates: 1) the relationships between trade movements in seven different stock trading platforms; 2) attempts to gather additional evidence for the mixed distribution hypothesis identifying the relationship between trade movements and index movement, return and volatility. The study recommends the model as a part of surveillance to assess the impact of trade movement generated in specific trading mode. It can also be used by technical traders to ascertain trading signals, and behavioural insights from the other trading modes mutually.

Keywords: volume of trading; returns; volatility; trading technology; stock market; algorithmic trading; co-location; direct market access.

DOI: 10.1504/IJEF.2023.129914

International Journal of Electronic Finance, 2023 Vol.12 No.2, pp.117 - 141

Received: 22 Apr 2022
Accepted: 30 Jul 2022
Published online: 03 Apr 2023 *

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