Golden Eye — How Traders Focus on and Select Information

Abstract

The design of trading screens impacts the decision-making process of traders in financial markets. We study which information sources traders primarily choose and process when faced with a trading situation. To measure this, we employ eye-tracking technology in laboratory experimental asset markets to explore which trading screen elements receive the most attentional focus during visual processing and whether attentional focus corresponds with the deliberate selection of screen elements. Furthermore, we assess which factors influence the attentional focus on screen elements, how focus influences trading decisions and trading performance. We find that traders’ main attentional focus lies on the order submission field and order book, making up 70% of eye fixations. Second, our results reveal that the order of selected screen elements largely aligns with the order of attentional focus. Third, we find that cognitive capabilities correlate with the attention attributed to certain screen elements as well as trading performance.

Keywords: Experimental Finance, Eye Tracking, Trading Interface, Laboratory Asset Markets