This Element is an excerpt from A Trader's First Book on Commodities: An Introduction to the World's Fastest Growing Market (9780137015450) by Carley Garner. Available in print and digital formats.
Open outcry: What’s going on in the trading “pit”–and why it matters to you.
The futures markets are the birthplace of a method of communication between trading professionals known as open outcry. Open outcry, a.k.a. “pit trading,” is an exciting form of trade execution in which shouting and hand signals transfer the details of intent to buy or sell a commodity and in what quantity. In recent decades, technological advances have greatly altered the way open outcry business is conducted.