It has been found by researchers that hormone level in traders increases in the nerve-racking, competitive environment and they do investments in more risky assets. The study has been published in the Scientific Reports. It was found that traders who were part of the study and purchased and sold assets among themselves invested more in risky assets.

The participants' natural hormone levels were measured in one experiment and were artificially increased in another.

According to Dr. Carlos Cueva, PhD, one of the lead authors of the study, from the department of economics at the University of Alicante, Spain, "Our view is that hormonal changes can help us understand traders' behavior, particularly during periods of financial instability".

Physical or psychological stress leads to increased level of cortisol. It increases blood sugar and also prepares the body to respond to it.

According to authors, their study could assist in the development of more stable financial institutions. According to the paper, the results say that changes in both cortisol and testosterone could lead to destabilization in financial markets as a result of increased risk taking behavior.

According to Dr. Ed Roberts, from the department of medicine at the UK's Imperial College London and one of the lead authors of the study, they want to know more about the effect of these hormones and only after that the environment in which traders work could be observed to know how much stressful it is.

According to Roberts, the factors could be having an influence on traders' hormones in addition to their decision-making.