Liquidity, Markets and Trading in Action: An Interdisciplinary Perspective

This
open access book addresses four standard business school subjects:
microeconomics, macroeconomics, finance and information systems as they
relate to trading, liquidity, and market structure. It provides a
detailed examination of the impact of trading costs and other
impediments of trading that the authors call “frictions”. It also
presents an interactive simulation model of equity market trading,
TraderEx, that enables students to implement trading decisions in
different market scenarios and structures. Addressing these topics
shines a bright light on how a real-world financial market operates, and
the simulation provides students with an experiential learning
opportunity that is informative and fun.

Each of the chapters is
designed so that it can be used as a stand-alone module in an existing
economics, finance, or information science course. Instructor resources
such as discussion questions, Powerpoint slides and TraderEx exercises
are available online.