A Study Of Key Factors That Influence Adoption Of Bots For Daily Trading In Pune City

Abstract

We study the impact of market liquidity on the adoption of Bots for Forex trading. We use a unique dataset that was created through a survey of members of a local trading forum, primarily traders who actively use Bots in their trading. We then examine the factors that influence adoption of Bots for Forex trading. Bots are ubiquitous across all major financial markets and proponents argue that total market liquidity is higher because of Bot adoption. Some studies even suggest that market liquidity may increase due to increasing Bot adoption; however, these natural experiments come with high caveats due to the cost of adding bots, as well as time-series data issues among other things. The current study aims to look at the determinants of Bots adoption in forex trading. Our models try to identify the factors that will drive Bots adoption in the prevailing forex markets. We use a unique dataset that was created through a survey of
members of a local trading forum, primarily traders who actively use Bots in their trading. Most of existing studies focus on Forex market, but we cover Cryptocurrency Market as well