Ring Trading

DEFINITION of 'Ring Trading'

The method by which certain types of investment business is conducted at the London Metal Exchange (LME), where trading activity occurs within a six-meter diameter circle with two large display boards that show current prices. Each of the ring dealing members have a fixed seat within the ring, behind which an assistant is permitted to stand to pass orders to the ring dealing member, and to liaise with customers regarding market conditions.

BREAKING DOWN 'Ring Trading'

Trading activity takes place in designated five-minute long periods known as "rings". Ring sessions are divided by trading instrument; for instance, steel trading takes place during the first session from 11:40am-11:45am (local time) and 1:05pm-1:10pm; and during the second session at 3:30pm-13:35pm. Ring trading at the LME occurs between 11:40am and 5:00pm; inter-office telephone trading is available 24 hours a day.

RELATED TERMS
  1. Bidding Ring

    A group of individuals or businesses that conspire to affect ...
  2. Rings

    The locations on the floors of futures and options exchanges ...
  3. Free-Crowd System

    A system of commodity trading in which floor members can make ...
  4. Closing

    The end of a trading session. The closing of a trading day halts ...
  5. Close

    The end of a trading session in financial markets. "Close" refers ...
  6. Broker Association

    A permitted association between exchange members who have shared ...
Related Articles
  1. Personal Finance

    7 Mistakes to Avoid When Buying an Engagement Ring

    Understand why the purchase of an engagement ring is so important. Learn about seven key mistakes to avoid when purchasing an engagement ring.
  2. Personal Finance

    Should I Insure My Wedding Ring?

    It depends, in part, on the ring's value and your current insurance coverage. Here's a guide to making a decision that's right for you.
  3. Personal Finance

    Making Sure Your Jewelry Is Insured

    Homeowners insurance only covers so much - find out how to make sure your jewelry is covered for theft, loss and damage.
  4. Markets

    India's $4 iPhone (AAPL, F)

    Ringing Bells, an Indian startup, has come out with a $4 smartphone reminiscent – very reminiscent – of the iPhone. Too good to be true?
  5. Insights

    Cornetto Designs Rings to Stop You From Netflix Adultery (NFLX)

    U.K. ice cream maker Cornetto released commitment rings that promise to stop your partner from watching your favorite Netflix shows alone.
  6. Markets

    The Tradition Of The NYSE Bell

    Ringing the NYSE bell has become a time-honored tradition that has included many celebrities, athletes and notable personalities.
  7. Managing Wealth

    Making Money In Residential Real Estate

    Even in a down market, local real estate properties have inefficiencies that investors can exploit.
  8. Markets

    6 Ways To Steal Her Heart - Without Breaking The Bank

    There's nothing like a romantic proposal to sweep a girl off her feet. Here are six ways to make a major impression on a small budget.
  9. Entrepreneurship & Small Business

    Understanding Product Differentiation

    Product differentiation is a marketing tool companies use to distinguish their products or services from the competition’s.
  10. Markets

    How Will Bank Regulation Affect British Banks?

    We look at the proposed changes to Britain's banking system, and see whether it will be able to stay competitive.
RELATED FAQS
  1. What is an ABC Agreement?

    Brokerage and other financial organizations usually purchase seats or memberships at the New York Stock Exchange (NYSE) for ... Read Answer >>
  2. How are members of the Cost Accounting Standards Board chosen?

    Read about the political appointments to the Cost Accounting Standards Board, which makes, promulgates and amends cost accounting ... Read Answer >>
  3. What's the difference between a market order and a limit order?

    Buy and sell trades with market orders at the present stock price and execute limit orders if the stock price falls within ... Read Answer >>
  4. How much does China's growth affect the price of industrial metals?

    Find out why the health of the Chinese economy is such an important variable for the prices of industrial metals, such as ... Read Answer >>
  5. What is the difference between a quote driven market and an order driven one?

    The difference between these two market systems lies in what is displayed in the market in terms of orders and bid and ask ... Read Answer >>
  6. How can I profit from a fall in the metals and mining sector?

    Learn the methods that shrewd investors use to profit from a fall in the metals and mining sector. These methods include ... Read Answer >>
Hot Definitions
  1. Sell-Off

    The rapid selling of securities, such as stocks, bonds and commodities. The increase in supply leads to a decline in the ...
  2. Brazil, Russia, India And China - BRIC

    An acronym for the economies of Brazil, Russia, India and China combined. It has been speculated that by 2050 these four ...
  3. Brexit

    The Brexit, an abbreviation of "British exit" that mirrors the term Grexit, refers to the possibility of Britain's withdrawal ...
  4. Underweight

    1. A situation where a portfolio does not hold a sufficient amount of a particular security when compared to the security's ...
  5. Russell 3000 Index

    A market capitalization weighted equity index maintained by the Russell Investment Group that seeks to be a benchmark of ...
  6. Enterprise Value (EV)

    A measure of a company's value, often used as an alternative to straightforward market capitalization. Enterprise value is ...
Trading Center