The effects of price limits on trading volume: a study of the cotton futures market
Abstract: Will trading volume shift from a market with price limits to a closely related market without them? An examination of the U.S. cotton market reveals that trading volume does in fact move from a class of security that is subject to trading limits (cotton futures) to another that is not (options on cotton futures). The results add to the debate on trading limits by calling into question the limits' overall effectiveness.
File(s): File format is application/pdf https://www.newyorkfed.org/medialibrary/media/research/current_issues/ci3-2.pdf
File(s): File format is text/html https://www.newyorkfed.org/medialibrary/media/research/current_issues/ci3-2.html
Provider: Federal Reserve Bank of New York
Part of Series: Current Issues in Economics and Finance
Publication Date: 1997
Order Number: 2