Business, Management and Accounting
5 years ago

Trading Frictions Limit Customer Liquidity, Boost Member Profits in Options Market.

Journal of Derivatives and Quantitative Studies 선물연구
The Effect of Discriminative Trading Frictions on Option Strategies
Sang Won Hwang

Paper Summary

The study looked at how trading fees affect option strategies. They found that when margin requirements go up, people trade less. Also, customer fees are higher than member fees, leading to different profits. Increasing target weight can lead to higher returns for members. Overall, these differences in fees can impact how much money people make from trading options.

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