Proceedings of the 2024 4th International Conference on Enterprise Management and Economic Development (ICEMED 2024)

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Research on the Influence of Market Arbitrage Behavior on Market Liquidity

Authors
Xinying Han1, *
1Financial Management Major, Guizhou University of Finance and Economics, Guiyang, Guizhou Province, 550025, China
*Corresponding author. Email: Boersksd@163.com
Corresponding Author
Xinying Han
Available Online 2 September 2024.
DOI
10.2991/978-94-6463-506-5_16How to use a DOI?
Keywords
market arbitrage behavior; Market liquidity; Trading strategy; Influencing factor
Abstract

Market arbitrage is a common trading strategy that trades on pricing differences between different markets or assets in order to make a profit. The purpose of this thesis is to study the effect of market arbitrage on market liquidity[1].We adopt the empirical research method, combined with quantitative analysis and case analysis, to analyze the impact of market arbitrage behavior on market liquidity. The results show that market arbitrage has a two-way effect on market liquidity. Moderate market arbitrage is helpful to improve market liquidity, but excessive market arbitrage may lead to abnormal market volatility and affect the stability of market liquidity. The conclusion of this study is of great significance for understanding the market operation mechanism and market risk management. Future studies can further explore the influence of regulatory policies on the relationship between market arbitrage behavior and market liquidity, and find ways to optimize the balance between market arbitrage behavior and market liquidity.

Copyright
© 2024 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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Volume Title
Proceedings of the 2024 4th International Conference on Enterprise Management and Economic Development (ICEMED 2024)
Series
Advances in Economics, Business and Management Research
Publication Date
2 September 2024
ISBN
978-94-6463-506-5
ISSN
2352-5428
DOI
10.2991/978-94-6463-506-5_16How to use a DOI?
Copyright
© 2024 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

Cite this article

risenwbib
TY  - CONF
AU  - Xinying Han
PY  - 2024
DA  - 2024/09/02
TI  - Research on the Influence of Market Arbitrage Behavior on Market Liquidity
BT  - Proceedings of the 2024 4th International Conference on Enterprise Management and Economic Development (ICEMED 2024)
PB  - Atlantis Press
SP  - 127
EP  - 133
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-506-5_16
DO  - 10.2991/978-94-6463-506-5_16
ID  - Han2024
ER  -