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Call Rule

What is 'Call Rule'

A exchange rule whereby the official bidding price for a cash commodity is competitively established at the end of each trading day and held until the opening of the exchange the following trading day.

Explaining 'Call Rule'

The call rule attempts to reduce overnight volatility by ensuring commodity prices begin trading near the previous day's closing bid.


Further Reading


The behavioral paradox: Why investor irrationality calls for lighter and simpler financial regulation
heinonline.org [PDF]
THE BEHAVIORAL PARADOX: WHY INVESTOR IRRATIONALITY CALLS FOR LIGHTER AND SIMPLER FINANCIAL … Fourthly, regulatory rule makers are subject to imperfect rationality, which tends to … On behavioral law and economics, see generally Christine Jolls, Cass R …

An examination of corporate call policies on convertible securitiesAn examination of corporate call policies on convertible securities
www.jstor.org [PDF]
THE BEHAVIORAL PARADOX: WHY INVESTOR IRRATIONALITY CALLS FOR LIGHTER AND SIMPLER FINANCIAL … Fourthly, regulatory rule makers are subject to imperfect rationality, which tends to … On behavioral law and economics, see generally Christine Jolls, Cass R …

Setting the optimal make-whole call premiumSetting the optimal make-whole call premium
www.tandfonline.com [PDF]
THE BEHAVIORAL PARADOX: WHY INVESTOR IRRATIONALITY CALLS FOR LIGHTER AND SIMPLER FINANCIAL … Fourthly, regulatory rule makers are subject to imperfect rationality, which tends to … On behavioral law and economics, see generally Christine Jolls, Cass R …

The empty call for benefit-cost analysis in financial regulationThe empty call for benefit-cost analysis in financial regulation
www.journals.uchicago.edu [PDF]
THE BEHAVIORAL PARADOX: WHY INVESTOR IRRATIONALITY CALLS FOR LIGHTER AND SIMPLER FINANCIAL … Fourthly, regulatory rule makers are subject to imperfect rationality, which tends to … On behavioral law and economics, see generally Christine Jolls, Cass R …

Big data, computational science, economics, finance, marketing, management, and psychology: connectionsBig data, computational science, economics, finance, marketing, management, and psychology: connections
www.mdpi.com [PDF]
THE BEHAVIORAL PARADOX: WHY INVESTOR IRRATIONALITY CALLS FOR LIGHTER AND SIMPLER FINANCIAL … Fourthly, regulatory rule makers are subject to imperfect rationality, which tends to … On behavioral law and economics, see generally Christine Jolls, Cass R …

Strengthening state capabilities: The role of financial incentives in the call to public serviceStrengthening state capabilities: The role of financial incentives in the call to public service
academic.oup.com [PDF]
THE BEHAVIORAL PARADOX: WHY INVESTOR IRRATIONALITY CALLS FOR LIGHTER AND SIMPLER FINANCIAL … Fourthly, regulatory rule makers are subject to imperfect rationality, which tends to … On behavioral law and economics, see generally Christine Jolls, Cass R …

Price bubbles and crashes in experimental call marketsPrice bubbles and crashes in experimental call markets
www.sciencedirect.com [PDF]
THE BEHAVIORAL PARADOX: WHY INVESTOR IRRATIONALITY CALLS FOR LIGHTER AND SIMPLER FINANCIAL … Fourthly, regulatory rule makers are subject to imperfect rationality, which tends to … On behavioral law and economics, see generally Christine Jolls, Cass R …

Probe into the Aspect of Sequential Finance and Design of Convertible Bond of Call ProvisionsProbe into the Aspect of Sequential Finance and Design of Convertible Bond of Call Provisions
en.cnki.com.cn [PDF]
THE BEHAVIORAL PARADOX: WHY INVESTOR IRRATIONALITY CALLS FOR LIGHTER AND SIMPLER FINANCIAL … Fourthly, regulatory rule makers are subject to imperfect rationality, which tends to … On behavioral law and economics, see generally Christine Jolls, Cass R …

The Muezzin's Call and the Dow Jones Bell: On the Necessity of Realism in the Study of Islamic LawThe Muezzin's Call and the Dow Jones Bell: On the Necessity of Realism in the Study of Islamic Law
academic.oup.com [PDF]
THE BEHAVIORAL PARADOX: WHY INVESTOR IRRATIONALITY CALLS FOR LIGHTER AND SIMPLER FINANCIAL … Fourthly, regulatory rule makers are subject to imperfect rationality, which tends to … On behavioral law and economics, see generally Christine Jolls, Cass R …



Q&A About Call Rule


How does economics study production?

Economics studies production by looking at factors of production such as capital and labor.

Why does this rule exist?

This rule exists to reduce overnight volatility by ensuring commodity prices begin trading near the previous day's closing bid.

How does this affect traders?

It allows traders to have more certainty about where they will start out when they open their positions in the morning, so they can plan accordingly.

What does "competitively established" mean?

Competitively established means that bids are set based on market activity from buyers and sellers in an attempt to find a fair price.

What is the call rule?

The call rule is an exchange rule that establishes a competitive bidding price for cash commodities at the end of each trading day and holds it until the opening of the exchange the following trading day.

What are the three main areas of economics?

Production, distribution, and consumption.

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