Prior research indicates that both execution speed and cost are important to traders, but that these two dimensions of execution quality are negatively related across U.S. equity markets. In our paper, we examine how U.S. equity traders, who are (un)informed about future price changes, trade-off...

We examine the execution quality of electronic stock traders who are geographically dispersed throughout the U.S. Traders who are located further away from market central computers in the New York City area experience slower order execution and higher trading costs. The negative relation between...

We examine how institutional risk control mechanisms influence proprietary stock trader behavior. When traders are forced to liquidate their inventory at a pre-designated time, they often hold onto their losing trades until the very last moment. We find that the difference between losing and...