Option Pit Traders Who Made It Off The Floor

There is a big diff between clerking for a local and hoping to get in the ring vs.

Option pit traders who made it off the floor.

Cme group made the announcement in a memorandum to the trading floor community dated sept. A wall street stock broker s salary can be quite high but it is also dependent upon a lot of factors. As overall liquidity on the floor wanes big banks such as jpmorgan chase and. The eurodollar options pit brims with more than 100 traders but the eurodollar futures pit next to it has just a few.

The professional traders and the algorithms you see in the market use some sort of a pivot point strategy. One example is the london metal exchange which still trades parts of the session in a ring which is synonymous with a pit. The pit is a raised octagonal structure where open outcry trading takes place. People who consider a career in this profession need an aptitude for finance economics and risk management among other investment components but they also must have the knowledge experience and a fair amount of self confidence.

The eurodollar options pit reopened on aug. Traders use signals to quickly negotiate buys and sells on the floor. 10 after a nearly five month closure. As a trader of options on the chicago board of options exchange cboe for over 10 years i witnessed and heard many unbelievable trading stories.

These signals may represent different types of orders a price or the number of shares intended to be part of the trade. The steps up on the outside of the octagon and the steps down on the inside give the pit something of the appearance of an amphitheater and allow hundreds of traders to see and hear each other during trading hours. Being a floor option mkt maker enables you to learn risk since floor traders are almost always opposite of paper so they need to constantly rebalance the greek risks. Options trading is not for the faint of heart.

Reminiscences of a stock operator a fictionalized. The dramatic and varied life stories of the world s most famous traders have made compelling material for books and movies. However a few exchanges still have physical traders on the floor or located at the exchange. In the old days this was a secret trading strategy that floor traders used to day trade the market for quick profits.

The greatest options trade i ve seen happened in the shadows. There were stories of traders risking too much and losing everything and traders retiring by the age of 25 having made their fortune. Operating during regular trading hours rth the cbot trading floor contains many such pits. The individual reported symptoms on the morning of sept.

The bottom line. Electronic trading lowered costs and made it easier for oversight in these days of increasing rules and regulations.