IDEAS home Printed from https://ideas.repec.org/a/eee/finana/v105y2025ics1057521925004569.html
   My bibliography  Save this article

Examining high-frequency patterns in Robinhood users’ trading behavior

Author

Listed:
  • Ardia, David
  • Aymard, Clément
  • Cenesizoglu, Tolga

Abstract

Using intraday (hourly) and overnight changes in the number of Robinhood (RH) investors holding a stock, we examine their high-frequency trading behaviors in response to contemporaneous and lagged returns. RH investors do not react to contemporaneous returns. However, they respond to lagged intraday or overnight returns, exhibiting three high-frequency behaviors: (i) the number of RH investors increases more for stocks with extreme lagged returns than for those with moderate returns, suggesting attention-driven buying; (ii) this reaction is asymmetric, with larger increases in the number of RH users following extreme negative returns compared to extreme positive returns, suggesting that their contrarian buying is stronger than their momentum buying; (iii) this asymmetry is strongest immediately after extreme returns and dissipates over time. Compared to findings from daily data, our analysis shows that daily data underestimates this asymmetry. Further analyses reveal greater attention to overnight movements, exacerbated behaviors during COVID-19, and variation across firm sizes, with more contrarian buying for larger-cap firms.

Suggested Citation

  • Ardia, David & Aymard, Clément & Cenesizoglu, Tolga, 2025. "Examining high-frequency patterns in Robinhood users’ trading behavior," International Review of Financial Analysis, Elsevier, vol. 105(C).
    • Handle: RePEc:eee:finana:v:105:y:2025:i:c:s1057521925004569
    DOI: 10.1016/j.irfa.2025.104369
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1057521925004569
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.irfa.2025.104369?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to

    for a different version of it.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;
    ;

    JEL classification:

    • G11 - Financial Economics - - General Financial Markets - - - Portfolio Choice; Investment Decisions
    • G14 - Financial Economics - - General Financial Markets - - - Information and Market Efficiency; Event Studies; Insider Trading
    • G40 - Financial Economics - - Behavioral Finance - - - General
    • G41 - Financial Economics - - Behavioral Finance - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making in Financial Markets
    • G53 - Financial Economics - - Household Finance - - - Financial Literacy

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:finana:v:105:y:2025:i:c:s1057521925004569. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/inca/620166 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.