Open Outcry
Definition of 'Open Outcry'A vanishing method of communicating on a stock, commodity or futures exchange that involves verbal bids and offers as well as hand signals to convey trading information in the trading pits. Trading pits are the parts of trading floors where trading takes place. A contract is made when one trader cries out that they want to sell at a certain price and another trader responds that they will buy at that same price. Most exchanges now use electronic trading systems, and the open outcry exchanges have gradually been replaced by electronic trading, which reduces the costs and improves trade execution speed.Also called pit trading. |
|
Investopedia explains 'Open Outcry'The length of the trading day differs between open outcry exchanges and those that use electronic trading such as Globex. Regular market hours typically run from 8:30 a.m. to 4:15 p.m. eastern standard time. Open outcry sessions for some commodities such as corn futures and options (CBOT) run from 9:30 a.m. to 1:15 p.m. Globex was the first global electronic trading system for futures and options, developed by the Chicago Mercantile Exchange and introduced in 1992. Electronic trading on Globex is available nearly 24 hours a day, from Sunday evening through late Friday afternoon, with a short break each day between close and reopening. This break varies from 30 to 60 minutes depending on the trading product. |
Related Definitions
Articles Of Interest
-
Take A Tour Of The Futures Trading Pit
Discover why controlled chaos can mean an exciting investment experience for you. -
How Brokers Can Avoid A Market-Maker's Tricks
Ensure that you and your clients are getting the best deal by avoiding these three pitfalls. -
The Global Electronic Stock Market
The way trading is conducted is changing rapidly as exchanges turn toward automation. -
Arbitrage Squeezes Profit From Market Inefficiency
This influential strategy capitalizes on the relationship between price and liquidity. -
Making It Big On Wall Street
Read about some of the most glamorous Wall Street jobs and what it takes to land one. -
Quants: The Rocket Scientists Of Wall Street
Blend math, finance and computer skills to command a high - and well deserved - salary. -
Uncovering Oil And Gas Futures
Find out how to stay on top of data reports that could cause volatility in oil and gas markets. -
Build A Baby Berkshire
Get a piece of Warren Buffett's profit by using Form 13F to coattail his picks. -
Trading Is Timing
Learn how to make gains even if you don't get in at the right time. -
Leading Economic Indicators Predict Market Trends
Leading indicators help investors to predict and react to where the market is headed.
Free Annual Reports