Market Implications of Hidden Orders in the NASDAQ Order Book

Authors

Robert Buss, Brigham Young University
Dr. Scott Condie, Brigham Young University

Keywords

market impications, hidden orders, NASDAQ

College

Family, Home, and Social Sciences

Department

Economics

Abstract

In recent years, high frequency trading has increased trade volume significantly. High frequency traders employ various algorithms in order to maximize their individual profit. Supporters of high frequency trading claim that high frequency traders provide the market with more liquidity, while opponents assert that such trading strategies make the market more unstable. Because high frequency trading is a relatively new phenomenon, academic research has not yet thoroughly investigated and modeled how markets currently behave. Additional research will allow policy makers to better understand what types of behavior are occurring in the markets and asses what effects they have in order to adjust financial regulations as deemed necessary.

Recommended Citation

Buss, Robert and Condie, Dr. Scott (2016) "Market Implications of Hidden Orders in the NASDAQ Order Book," Journal of Undergraduate Research: Vol. 2016: Iss. 1, Article 32.
Available at: https://scholarsarchive.byu.edu/jur/vol2016/iss1/32