3 ms·
What's missing from this explanation is how open outcry trading works. If the "sell 30 April at 142" instruction is barely heard correctly, how would other trad
by kccqzy 2y ago
What's missing from this explanation is how open outcry trading works. If the "sell 30 April at 142" instruction is barely heard correctly, how would other traders be sure of what they heard and react accordingly? It seems like a messy trading environment where mistakes could easily be made. What do they do to prevent these mistakes and to prevent traders from reneging on the trades? Do they have a ticker tape? Do they have employees who would record all transactions on the ticker tape? How do they go from verbal instructions to a verified record?
Amazing movie though. I just wish I had more context to understand the scene fully.
- joezydeco 2y agoThere was a system of hand signals to back up the communication. The movie didn't really show that. Here's how they did it in Chicago at the Commodities Exchange: https://youtu.be/yd31eEEWOoc https://youtu.be/yd31eEEWOoc
- wildzzz 2y agoOne of my favorite scenes in Ferris Bueller
- tomwheeler 2y agoThese hand signals are known as arb. I was told (when I worked for a brokerage firm) that the name stems from people involved with arbitrage needing to communicate quickly, before the rest of the market caught on to what they were doing). https://en.wikipedia.org/wiki/Hand_signaling_(open_outcry) https://en.wikipedia.org/wiki/Hand_signaling_(open_outcry)
- vergeman 2y agoI attempted a little webcam machine learning video game to trade open outcry. Can't say it works that well but I claim side project lol. https://www.thepittrader.com/ https://www.thepittrader.com/