Trading Patterns and Performance of Trader Types in Taiwan Futures Market

Chao-Hsien Lin (), Hsinan Hsu and Chwan-Yi Chiang
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Chao-Hsien Lin: Department of Business Administration, National Cheng Kung University and Diwan College of Management, No. 1, Ta-Hsueh Road, Tainan 701, Taiwan, R.O.C.
Hsinan Hsu: Department of Finance, Southern Taiwan University of Technology, No. 1, Nan-Tai Street, Yung Kang City, Tainan, Taiwan, R.O.C.
Chwan-Yi Chiang: Department of Business Administration, National Cheng Kung University, No. 1, Ta-Hsueh Road, Tainan 701, Taiwan, R.O.C.

Review of Pacific Basin Financial Markets and Policies (RPBFMP), 2005, vol. 08, issue 02, 217-234

Abstract: By analyzing the behavior and performance of trader types in the Taiwan futures market, we find that the foreign investors, futures dealers and security dealers are positive feedback traders, whereas individuals are contrarians. Evidence shows that the foreign investors and security dealers earn significant profits. We conclude that they are information-based traders. Instead, the individuals and futures traders perform poorly. However, weak evidence reveals that futures dealers are behavioral-based traders. As it is also reported, the cumulative performance demonstrates that foreign investors are the clear winners and individuals are the clear losers in the Taiwan futures market.

Keywords: Information-based trader; behavioral-based trader; feedback trading; market timing ability; cumulative performance (search for similar items in EconPapers)
JEL-codes: G1 G2 G3 (search for similar items in EconPapers)
Date: 2005
References: View complete reference list from CitEc
Citations: View citations in EconPapers (6)

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DOI: 10.1142/S0219091505000403

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