Live and Learn with Interbank Trader: The Trading Decision-Making Process from Thai Interbank Traders’ Perspective

Abstract

The purpose of this paper is to shred the light for the readers on the trading practices form the practitioners that are key players in financial interbank market. This paper investigates Thai interbank traders as to reveal the in-dept vision of their working life that link to their decision-making processes. The main contribution of the present study is that it extends our understanding of the traders’ life and their trading decision making processes. From the study, the trading process is a process that has three steps, gathering information, analyzing, and learning and developing. From in-debt interviews, the result shows that the most important information for trading are both public and market information. Moreover, participants mostly care about the risk as their key factor followed by their discipline with no emotion involving. Lastly, learning form the market is only way to get a trading process development. Although we may think that the external knowledge can teach us many things, trading knowledge is an implicit that can only be found in the trading world. The fact that traders do not use the knowledge from academic world but only their tacit skill give us an idea of why theoretical model do not give a very good result in trading world.

Keywords: Interbank, Trader, trading, decision-making process, qualitative finance

JEL Classification: J, F