Thursday, November 16th, 2017

How has options-trading affected the workings of a stock-only market?

You have (? The?) Options Trading (future) affects? the stock market? ? There alg? No positive or negative impact of the options for negotiation? No direct or indirect impact on stock exchanges? Not that I’m not trying to understand what options trading – I’m trying to figure out whether there is alg? No study on the impact of futures trading in a stock market on a global scale.

Comments

2 Responses to “How has options-trading affected the workings of a stock-only market?”
  1. paigespirate says:

    Great question, I trade stocks. I was just thinking, this AM, about the silver market, again.
    And for the millionth time, I wondered the same things.
    LOL, this isn’t an answer, really, but I do share your interest in the system effects on each other.
    I personally, don’t think it really makes a difference. If anything, I lean toward liking the system this way. I like separation, it offers a better chance of keeping it “legal”, it seems.

  2. Allan says:

    Options trading reduces volatility in the price of the underlying stock. Since traders can take long or short positions or buy puts and calls, some of the risk is taken by those traders. This tends to reduce the risk taken by the actual owners of the stock, reducing price movements.

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