Blackboard Trading

AAA

DEFINITION of 'Blackboard Trading'

The buying and selling of commodities and futures contracts off of a blackboard found on the wall of a commodity exchange. Blackboard trading specialists hand wrote bids and offers on large chalkboards and when a matching price came up, the trade was executed.


Also called "posting," blackboard trading was too slow of a process to keep up with the volume of trades and began to be replaced by automated quote boards in 1969.

INVESTOPEDIA EXPLAINS 'Blackboard Trading'

The American Stock Exchange tested the first automated quote boards, which could electronically display the current quotes and the most recent prices of more than 100 securities.

Today, software programs make it possible to execute trades automatically without a dealer, specialist or market maker's assistance, through electronic communications networks and electronic stock exchanges. These systems are programmed to match buy and sell orders for the same number of shares at the same price.

RELATED TERMS
  1. Board Broker

    A member or member nominee of a commodity exchange who is entrusted ...
  2. Commodity

    1. A basic good used in commerce that is interchangeable with ...
  3. Exchange

    A marketplace in which securities, commodities, derivatives and ...
  4. Globex

    An electronic trading platform used for derivative, futures, ...
  5. Board Broker System

    A system used by commodity exchanges, in which agents are assigned ...
  6. Futures Contract

    A contractual agreement, generally made on the trading floor ...
RELATED FAQS
  1. What are the primary sources of market risk?

    Market risk is the risk of loss due to the factors that affect an entire market or asset class. Market risk is also known ... Read Full Answer >>
  2. How does the risk of investing in the electronics sector compare to the broader market?

    The risk of investing in the electronics sector closely approximates the risk of investing in the broader market. The electronics ... Read Full Answer >>
  3. How do I learn technical skills for trading commodities?

    Many resources are available for those seeking to learn to trade commodities, also known as futures, directly from the major ... Read Full Answer >>
  4. How do markets account for systematic risk?

    Systematic risks provide markets with an unpleasant quandary. Economists, policy makers, directors, fund managers and investors ... Read Full Answer >>
  5. What stage of the economic cycle is usually the best for an investor to enter the ...

    The best time during the economic cycle for an investor to enter the electronics sector is when he has confidently identified ... Read Full Answer >>
  6. How do S&P 500 futures work?

    S&P 500 futures are a type of capital asset contract that provides a buyer the right to a predetermined selection of ... Read Full Answer >>
Related Articles
  1. Investing Basics

    How To Invest In Commodities

    Find out which futures, options or funds will be your perfect commodity portfolio fit.
  2. Active Trading

    Commodities: The Portfolio Hedge

    These diverse asset classes can provide downside protection and upside potential. Find out how to use them.
  3. Options & Futures

    An Introduction To Managed Futures

    Their inverse correlation with stocks and bonds make these alternative investments worth getting to know.
  4. Options & Futures

    Trading The Soft Commodity Markets

    Learn the contract specifications for a few of the most heavily traded commodities.
  5. Options & Futures

    Options On Futures: A World Of Potential Profit

    There's one simple hurdle in the transition from stock to futures options: learning about product specifications.
  6. Options & Futures

    Commodities That Move The Markets

    Find out how the everyday items you use can affect your investments.
  7. Insurance

    Futures Fundamentals

    For those who are new to futures but want a solid understanding of them, this tutorial explains what futures contracts are, how they work and why investors use them.
  8. Investing Basics

    What's the Primary Market?

    The primary markets are where investors can get first crack at a new security issuance.
  9. Investing Basics

    What is the Coupon?

    In the financial world, “coupon” represents the interest rate on a bond.
  10. Investing Basics

    Explaining the Coupon Rate

    Coupon rate is the stated interest rate on a fixed income security.

You May Also Like

Hot Definitions
  1. Fiduciary

    1. A person legally appointed and authorized to hold assets in trust for another person. The fiduciary manages the assets ...
  2. Expected Return

    The amount one would anticipate receiving on an investment that has various known or expected rates of return. For example, ...
  3. Carrying Value

    An accounting measure of value, where the value of an asset or a company is based on the figures in the company's balance ...
  4. Capital Account

    A national account that shows the net change in asset ownership for a nation. The capital account is the net result of public ...
  5. Brand Equity

    The value premium that a company realizes from a product with a recognizable name as compared to its generic equivalent. ...
Trading Center