Information-motivated trades

Information-motivated trades

Trades in which an investor believes he or she possesses pertinent information not currently reflected in the stock's price.

Information-Motivated Trades

Trades that an investor makes when he/she believes that he/she has information showing that the trade will ultimately result in a profit, whether or not the price is immediately advantageous. An investor may use technical analysis, fundamental analysis, or some other form of analysis when making information-motivated trades. However, one may also make trades based on inside information, which is illegal in most circumstances.
References in periodicals archive ?
Although both trading processes are active after the close and before the open, the nonanonymous, liquidity-motivated trades are more prevalent after the close, and the anonymous, information-motivated trades are more prevalent before the open.
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