Finding 8335Emerging EvidenceValidation V0
This paper uniquely investigates retail options trading costs, emphasizing the overlooked role of limit orders. Using Form 606 and trader-level data, it innovatively adjusts effective spread calculations for aggressive limit orders setting the NBBO, revealing substantial cost reductions. Its empirical approach offers fresh insights, impacting market microstructure and regulatory policy.
78%Confidence
1Evidence objects
v1Version
DraftStatus
Evidence trail
Supporting78% linkage confidence
This paper uniquely investigates retail options trading costs, emphasizing the overlooked role of limit orders. Using Form 606 and trader-level data, it innovatively adjusts effective spread calculations for aggressive limit orders setting the NBBO, revealing substantial cost reductions. Its empirical approach offers fresh insights, impacting market microstructure and regulatory policy.
key_findings bullet 4 · key_findings
Inspect source: Unpacking Retail Trading Costs: the Role of Options Trading and Limit Order Usage →This Finding was extracted from the configured corpus. It is versioned, traceable, and may evolve through editorial review or new corpus evidence.