Brownbag Seminars: The Role of Small Traders in the Stock Market

Abstract: This paper examines the liquidity imbalance and price changes with different levels of frequencies and different types of small traders in 30 stocks comprising the benchmark Turkish BIST30 index in 2019. During liquidity imbalance in the market, I examine the role of small traders in liquidity supply at different frequencies by leaning against the imbalance. I show preliminary evidence that small traders may have an important role in providing liquidity in the longer term, that is beyond intraday.