Arb: quantity vs. price

Here’s another, very handy resource on Arb (PDF attached), with handy line drawings but also a lot more text describing what’s happening.

It also makes clear the difference between indicating quantity and price in the hand signals:

To signal price, extend the hand in front of and away from the body.

To indicate quantity – the number of contracts being bid or offered — touch your face.

So the gestures we were doing, at the face, were indicating quantity. Use the same hand signals, but with the hand in front and away from the body, for price.

(this explains a lot about what we see when we actually look at footage from the Merc or NYBT!)

Commodity and Futures Handsignals

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