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The futures market: Liquidity and the technique of spreading

✍ Scribed by Leo Melamed

Publisher
John Wiley and Sons
Year
1981
Tongue
English
Weight
475 KB
Volume
1
Category
Article
ISSN
0270-7314

No coin nor oath required. For personal study only.

✦ Synopsis

he purpose of this article is to explain "spreading" as a technique, how it T relates to futures markets, and its importance to the efficiency and viability of these markets. Such an explanation, however, cannot be entertained without some understanding of the other futures market techniques, as well as an analysis of the sources that give rise to market liquidity. This topic is of timely importance, as it illustrates the impact an abolition of the tax advantages emanating from spreading could have on the overall efficiency of the pricing and hedging activities of a futures market.

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