Financial Trading Is Not Just a Gender-based Difference Issue. A Critical Investigation Across Market Mechanisms

Abstract

As financial markets grow increasingly accessible and diverse, understanding the interplay between structural factors and individual behaviors has become more critical than ever. This paper investigates the dynamic relationship between gender differences, individual traits, and market mechanisms in shaping traders’ behavior. With insight from the existing literature, we highlight the persistent differences in the financial decision-making process as the market structures change, and we examine how these differences are driven by gender differences as well as other individual factors such as financial literacy, risk attitude, or trading experience. Furthermore, we consider the transformative impact of technological advancements and market design elements—such as auction types, liquidity, and transparency—on trading behavior. The findings reveal the importance of tailored financial literacy programs, inclusive policies, and technological interventions to create equitable and efficient financial environments, empowering a wider range of traders and enhancing market performance.