Volumes at the how i trade options (wiley trading) pdf in 2003 were a record breaking 454 million contracts. Chicago Board of Trade in 1993.
The CBOT took shape to provide a centralized location, where buyers and sellers can meet to negotiate and formalize forward contracts. In 2012, the CBOT expanded electronic trading hours to 22 hours per day to become more competitive in the industry. The open outcry hours remained the same. Clock on the front of the building. CBOT trading floor contains many such pits. The importance of the pit and pit trading is emphasized by the use of a stylized pit as the logo of the CBOT.
This is generally done by using a physical representation of a trader’s intentions with his hands. If the trader wants to sell five contracts at a price of eight, they would yell «5 at 8», stating quantity before price, and show one hand with palm facing outward, showing 5 fingers. The combination of hand-signals and vocal representation between the way a trader expresses bids and offers is a protection against misinterpretation by other market participants. For historical purposes, an illustrated project to record the hand signal language used in CBOT’s trading pits has been compiled and published. With the rise of electronic trading the importance of the pit has decreased substantially for many contracts, though the pit remains the best place to get complex option spreads filled. On August 1, 1974, trading at The Chicago Board of Trade was halted after an anonymous caller said a bomb had been placed in the building.