The Paris Bourse was traditionally a call market.In a call market,an agent of the exchange accumulates,over a period of time,a batch of orders that are periodically executed by written or verbal auction throughout the trading day.Both market and limit orders are handled in this way.The major disadvantage of a call market is that

Question

Quizplus · Accepted Answer

In a call market, bid and ask quotations are not available prior to the call, so traders are not certain about the price at which their orders will transact. This lack of transparency can be a major disadvantage of a call market. Option B is also a potential disadvantage, but it is not as central to the concept of a call market as the lack of price transparency. Option C is not a disadvantage of a call market specifically, but rather a general concern about trading in any market with low liquidity. Option D is incorrect, as there is a definite disadvantage to call markets, as described above.

The Paris Bourse Was Traditionally a Call Market