Trading Floor Hand Signals

Cme hand signals are the default example with any variations listed in each exchange category.

Trading floor hand signals.

This is the sign language used by professional traders on trading floors throughout the world. The part of the trading floor where this takes place is called a pit. Open outcry is a method of communication between professionals on a stock exchange or futures exchange typically on a trading floor. Hand signals are first adopted by chicago mercantile exchange in the early 1970 s.

Trading floor hand signals by ex sfe trader nick radge shows you how to do the trading floor hand signals. Plus the najarian brothers decode the. The signals let traders and other floor employees know how much is being bid and asked how many contracts are at stake what the expiration months are the types of orders and the status of the orders. Jackie deangelis anthony grisanti pete najarian and jon najarian break it down.

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. It also provides anonymity to big traders and also traders believed that this methodology is less prone to manipulation. The system is used at financial exchanges such as the chicago mercantile exchange cme and the american stock exchange amex. New bids or offers would be.

It involves shouting and the use of hand signals to transfer information primarily about buy and sell orders. Enter the hand signal. Explore the open outcry hand signals below. Trading floor hand signals decoded it s the end of an era at the cme.

The history of hand signals on the trading floor begins around the middle of the 19th century. Brokers and traders found themselves unable to reconcile the distance between their personal staffs working feverishly in offices high above the pit and the pit itself.