Effect of High Frequency Trading on Retail Investors A Study in India
Rajan Lakshmi1, Vedala Naga Sailaja2

1Rajan Lakshmi, A Research Scholar, K.L University, Guntur (A.P), India.
2Dr. Vedala Naga Sailaja, Associate Professor, K.L University, Guntur (A.P), India.

Manuscript received on 01 May 2019 | Revised Manuscript received on 15 May 2019 | Manuscript published on 30 May 2019 | PP: 3066-3078 | Volume-8 Issue-7, May 2019 | Retrieval Number: G5251058719/19©BEIESP
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© The Authors. Blue Eyes Intelligence Engineering and Sciences Publication (BEIESP). This is an open access article under the CC-BY-NC-ND license (http://creativecommons.org/licenses/by-nc-nd/4.0/)

Abstract: The present study has been emphasized on the high frequency trading factors impact on the retail investors trading activity. The study has considered the historical time series data from the period of 1 st July, 2018 to 31st Sep, 2018 of Spot market index-Nifty and index future – Banknifty. The GARCH model has been applied to know the one minute spot index-Nifty volatility impact on the other time periods and the result reveals that the five minutes banknifty volatility got influenced slightly but there no impact has been observed on the banknifty time periods of fifteen minutes, thirty minutes, one hour and one day. The high frequency trading factors impact on the retail trading activity has been examined with the primary data. The structure equation model has been framed and the result indicated that the small margin trading with less time horizon trading positions are getting influenced but at end of the day influence has been observed on the market prices. This paper is useful to the retail investors, regulators, fund managers and research academicians
Keyword: Banknifty, Factors, High Frequency Trading, Nifty, Retail Traders and Volatility.
Scope of the Article: Frequency Selective Surface