Traders Network before Market Crashes

Author: Rossitsa Yalamova

Abstract: The goal is to reveal scale-dependent topology of the network structure of stock market participants. The correlation structure of stock price series reveals the correlation network between traders. The partition decoupling method reveals the topological structure. The relation of the structural organization to dynamical complexity involves synchronization of trading that may lead to crashes. Log-periodic oscillations of index prices as precursory patterns of crashes are hypothesized to appear as a result of information cascade and herding among traders.

Pages: 13-15

DOI: 10.46300/9103.2022.10.2

International Journal of Economics and Statistics, E-ISSN: 2309-0685, Volume 10, 2022, Art. #2