Abstract
Social trading platforms (STPs), as forms of trading infrastructures, provide retail traders with easy access to online trading. The social features and their impacts that are enabled by STPs, however, are largely underexamined in the literature on financial infrastructures. This chapter examines the impact of sociability on retail trader behavior in the context of STPs. It focuses on three aspects of the potential influences of the interactions among foreign exchange retail traders. The first aspect is the relationship between sociability and trader financial performance. The second aspect is the relationship between sociability and investor survivorship. The third aspect is the relationship between sociability and the wisdom of crowds. It argues that future research could be done in these areas to strengthen the understanding of the impact of sociability on financial decision-making.
| Original language | English |
|---|---|
| Title of host publication | The Cambridge Global Handbook of Financial Infrastructure |
| Editors | Carola WESTERMEIRE, Malcolm CAMPBELL-VERDUYN, Barbara BRANDL |
| Publisher | Cambridge University Press |
| Chapter | 25 |
| Pages | 309-321 |
| Number of pages | 13 |
| ISBN (Electronic) | 9781009428118 |
| ISBN (Print) | 9781009428132 |
| DOIs | |
| Publication status | Published - 2025 |
Bibliographical note
Publisher Copyright:© Carola Westermeier, Malcolm Campbell-Verduyn and Barbara Brandl 2025.
Keywords
- currency market
- financial decisions
- retail trading
- social communication
- social finance
- trader behavior