• Skip to main content
  • Skip to footer

OptionMetrics

search
  • About Us
    • Who We Serve
    • Why OptionMetrics
    • Leadership
  • Data Products
    • Equities
      • United States
      • Europe
      • Asia
      • Canada
      • ETFs
    • Futures
    • Signed Volume
    • Implied Beta
    • Dividend
      • Implied Dividend
      • Dividend Forecasting
  • Research
  • Blog
  • News & Events
  • Careers
  • Contact

J. A. Crego and P. A. Garcia-Ares: From Options to Fractions: The Effects of Fractional Trading on the Options Market

March 7, 2025

The introduction of fractional trading has allowed retail investors to access high-priced stocks without relying on buying call options. We find that retail trading in affordable call options declines significantly after fractional trading becomes available. This shift leads to higher adverse selection, wider bid-ask spreads, and increased trading costs in the options market. These findings underscore the disruptive effects that changes in equity market access can have on derivatives trading, with significant implications for market makers and liquidity providers.

Download

Share this post:
  • Facebook
  • Pinterest
  • Twitter
  • Linkedin
OptionMetrics Logo
  • About Us
  • Who We Serve
  • Why OptionMetrics
  • Leadership
  • Data Products
  • Equities
  • Futures
  • Signed Volume
  • Implied Beta
  • Dividend Forecasting
  • Research
  • Blog
  • News & Events
  • Careers
  • Contact Us
  • Support Request
Stay Connected

dashicons-linkedin dashicons-twitter dashicons-facebook-alt

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply

© 2025 OptionMetrics, LLC. All Rights Reserved. | Privacy Policy | Terms of Use | Accessibility | Site Map