Option Pit Traders Who Made It Off The Floor

Cme group made the announcement in a memorandum to the trading floor community dated sept.

Option pit traders who made it off the floor.

The bottom line. 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. 10 after a nearly five month closure. The eurodollar options pit reopened on aug.

The eurodollar options pit brims with more than 100 traders but the eurodollar futures pit next to it has just a few. Options trading is not for the faint of heart. 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 pit is a raised octagonal structure where open outcry trading takes place.

Electronic trading lowered costs and made it easier for oversight in these days of increasing rules and regulations. The greatest options trade i ve seen happened in the shadows. Reminiscences of a stock operator a fictionalized. Operating during regular trading hours rth the cbot trading floor contains many such pits.

Joining an option mktmaking firm and learning options then getting in the ring. The individual reported symptoms on the morning of sept. 28 according to the memorandum which was forwarded by a cme spokesman. 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.

A wall street stock broker s salary can be quite high but it is also dependent upon a lot of factors. In the old days this was a secret trading strategy that floor traders used to day trade the market for quick profits. There is a big diff between clerking for a local and hoping to get in the ring vs. As overall liquidity on the floor wanes big banks such as jpmorgan chase and.

Moving forward we re going to give you our introduction to pivot points and show you how to calculate the pivot points. 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. Traders use signals to quickly negotiate buys and sells on the floor. There were stories of traders risking too much and losing everything and traders retiring by the age of 25 having made their fortune.

However a few exchanges still have physical traders on the floor or located at the exchange. The dramatic and varied life stories of the world s most famous traders have made compelling material for books and movies.