Evidence from psychology shows that people tend to be overconfident in two dimensions: they underestimate uncertainty and overestimate their own abilities. This paper provides evidence that foreign exchange dealers are likewise overconfident in both dimensions.We study overconfidence because...

The Year in Review 2012 summarizes the offerings from the Research Foundation of CFA Institute over the past year — monographs, literature reviews, workshop presentations, and other relevant material

This article suggests that metaphors are essential to understanding leadership. Metaphors can serve as underlying organizing structures of leadership thinking and experience, and they can be mobilized in order to accomplish interpersonal goals. The literature on leadership abounds with metaphors...

This paper provides evidence of private information in the interdealer foreign exchange market. In so doing it provides support for the hypothesis that information is an important reason for the strong positive correlation between order flow and returns. It also provides evidence that...

Electronic trading has transformed foreign exchange markets over the past decade, and the pace of innovation only accelerates. This formerly opaque market is now fairly transparent and transaction costs are only a fraction of their former level. Entirely new agents have joined the fray,...

Research on foreign exchange market microstructure stresses the importance of order flow, heterogeneity among agents, and private information as crucial determinants of short-run exchange rate dynamics. Microstructure researchers have produced empirically-driven models that fit the data...

[...]Early in the morning of each business day, the major foreignexchange trading firms send their customers lists oftechnical trading signals for that day. Timely technical signalsare also supplied by major real-time information providers.These signals, which are based primarily on prior price...

This paper provides evidence that informed traders dominate the response of limit-order submissions to shocks in a pure limit-order market. In the market we study, informed traders are highly sensitive to spreads, volatility, momentum and depth. By contrast, uninformed traders are relatively...

This paper makes three contributions to our understanding of the price discovery process in currency markets. First, it provides evidence that this process cannot be the familiar one based on adverse selection and customer spreads, since such spreads are inversely related to a trade’s likely...