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Analysis on Appearance Reasons of the Positive Feedback Traders
Beijing, China August 30-September 01
DOI Bookmark: http://doi.ieeecomputersociety.org/10.1109/ICICIC.2006.236First International Conference on Inn ...
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Shi An, Harbin Institute of Technology, China
Lei Wang, Harbin Institute of Technology, China
He Huang, Harbin Institute of Technology, China
Positive feedback traders buy the asset when price is rising and sell it when price is falling. This type of speculation in short term will cause the violent fluctuation for a given asset price, and make great influence to the stabilization of the financial market. The price reaction model under the influence of noise traders is established by considering the influence which the investment cost and information arrival rate make to the arbitrage and asset price. We analyze the reasons and conditions why positive feedback traders are born from quantitative analysis.
Citation:
Shi An, Lei Wang, He Huang, "Analysis on Appearance Reasons of the Positive Feedback Traders," icicic, vol. 2, pp.478-482, First International Conference on Innovative Computing, Information and Control - Volume II (ICICIC'06), 2006
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