CFAI V1 Read11 Q14 P247 - Quant

swaptiongamma

New member
Joined
Jun 18, 2026
Messages
0
Reaction score
0
Shouldn’t the bid-ask spread be the dependent variable and stock trading volume be the independent variable as the stock trading volume is what drives the B-A spread. Don’t ya think so?
 
I agree with you. It should be the trading volume that drives the spread.
 
As far as I know, they are interchangeable, low trading volume leads to large spreads, and/or large spreads leads to low trading volume…
 
Back
Top