Disentangling the Effects of Geographic Proximity on Forex Social Trading Platforms

Mengli Yu, Yijing Li, Eric T.K. Lim, Chee-Wee Tan

Publikation: Bidrag til bog/antologi/rapportKonferencebidrag i proceedingsForskningpeer review

Abstrakt

Forex social trading is a nascent financial innovation that endows investors with opportunities to speculate on global currencies online by following and emulating investment strategies from savvy traders. Although social trading has been touted as a means of lowering distance barriers and facilitating interactions among investors, the geographical dispersion of forex markets confines traders’ expertise to domestic currencies due to the cost of information gathering, thereby culminating in home bias behavior. Espousing geographic proximity theory, we endeavor to explore leading traders’ home bias propensities on forex social trading platforms and uncover how such behaviors may affect their performance and their appeal to followers from afar. Furthermore, we strive to delve into the role of governmental transparency of currency issuers on reconciling followers’ preference for profitable home-biased leading traders. In so doing, we quantify the influence of geographic proximity on leading traders’ performance and followers’ subscription tactics, which in turn yield insights into optimized emulative trading strategies for forex social trading.
OriginalsprogEngelsk
TitelPACIS 2019 Proceedings
RedaktørerDongming Xu, James Jiang, Hee-Woong Kim
Antal sider8
UdgivelsesstedAtlanta, GA
ForlagAssociation for Information Systems. AIS Electronic Library (AISeL)
Publikationsdato2019
Artikelnummer180
StatusUdgivet - 2019
BegivenhedThe 23rd Pacific Asia Conference on Information Systems. PACIS 2019 - Shaanxi Guesthouse, Xi’an, Kina
Varighed: 8 jul. 201912 jul. 2019
Konferencens nummer: 23
http://www.pacis2019.org/

Konference

KonferenceThe 23rd Pacific Asia Conference on Information Systems. PACIS 2019
Nummer23
LokationShaanxi Guesthouse
LandKina
ByXi’an
Periode08/07/201912/07/2019
Internetadresse

Emneord

  • Geographic proximity
  • Home bias behavior
  • Forex social trading
  • Governmental transparency

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