Trading Pit Hand Signals — Ebook

The Stock Market: Explained! by 1950s educational videos

Two gems I found on DVD. Sadly, since I don’t own the copyright, and don’t feel like getting into a kerfuffle with anyone, for now I’m just going to put them behind a password on Vimeo for our own internal use. So, Team TRADE PRACTICES, you know what to do. If anyone else is reading … Continue reading

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 … Continue reading

Open Outcry video

(skip around for the good parts, good idea to start at like 7:19) (3:44-4:00 has an excellent exchange, and features a woman in the Pit) (starts at 6:12) (:29 is a good place to start) (start 12:57) (start 5:03)

Open outcry handsignals documentation

Trading Pit History at tradingpithistory.com Oh my god, so awesome!  Not sure how I missed this previously. Has very clear, thorough photo documentation of the different hand signals used on different trading floors, along with textual explanations.  Totally brilliant! Seems to have been assembled by a trader (maybe the guy in the photos?  I haven’t thoroughly … Continue reading

The Merc — historical trivia

[from Wikipedia] The Chicago Mercantile Exchange (CME) (often called “the Chicago Merc,” or “the Merc”) is an American financial and commodity derivative exchange based in Chicago and located at 20 S. Wacker Drive. The CME was founded in 1898 as the Chicago Butter and Egg Board, an agricultural commodities exchange.

The Merc, old and new

Arb

Hand Signaling, also known as arb or arbing, short for arbitrage, is a system of hand signals used on financial trading floors to communicate buy and sell information in an open outcry trading environment. The system is used at financial exchanges such as the Chicago Mercantile Exchange and the American Stock Exchange (AMEX). The AMEX is the only U.S. stock market to permit the … Continue reading

Open outcry

[From Wikipedia] Open outcry is the name of a method of communication between professionals on a stock exchange or futures exchange. It involves shouting and the use of hand signals to transfer information primarily about buy and sell orders. The part of the trading floor where this takes place is called a pit. Examples of markets which use this system in the United … Continue reading