Pit Broker
What It Is:
A pit broker, also known as a floor broker, is an employee of a brokerage firm whose job is executing orders on the floor of a stock or commodity exchange on behalf of clients.
ex-pit investment & finance definition
Of or relating to a futures transaction that takes place away from the trading floor.
Do Pit Traders Have an Advantage?
When markets go against a trader, it's so often easy to believe that it's 'a conspiracy': professional traders do better, because they have better information to trade on.
Definition
Pit
An area where futures or options contracts are traded on an exchange floor. Also known as the ring.
RELATED TERMS ...
Automated Pit Trading (APT)
Definition:
Introduced in 1989, APT is the LIFFE screen-based Trading system that replicates the open outcry method of trading On screen.
Pit (2 to 8 players) - first published by Gavitt in 1903, in this game players are charged with the task of cornering the market in one type of commodity.
Pit
A specially constructed area on the trading floor of some exchanges where trading in a option is conducted. On other exchanges, the term ring designates the trading area.
[MORE] ...
Pit
The circular area on a trading floor, where futures and options are bought and sold.
Pivot
A price level noted by the market's failure to penetrate or a sudden increase in volume that accompanies the move through the price level.
Pit Brokers: See Floor Broker.
Point-and-Figure: A method of charting that uses prices to form patterns of movement without regard to time.
Pit: The area on the trading floor where futures and options contracts are bought and sold.
Position limit: Limitation of the maximum size of a position in futures or options, which may be held by an individual or a group.
Pit
A specific area of the trading floor that is designated for the trading of an individual futures or options contract.
Pit committee ...
Pit - The area on the trading floor where futures and options on futures contracts are bought and sold. Pits are usually raised octagonal platforms with steps descending on the inside that permit buyers and sellers of contracts to see each other.
Pit: A specially constructed arena on the trading floor of some exchanges where trading in a futures contract is conducted. On other exchanges the term "ring" designates the trading area for a commodity. See Ring.
Ex-Pit: See Transfer Trades and Exchange for Physicals.
Source: Commodity Futures Trading Commission
About Us ...
Ex-pit transaction
The purchase of commodities off the exchange's floor.
Ex post return
Related: Holding-period return ...
Traders pit - Focus is on the upcoming critical days with relation to fundamental and technical information as well as the market data in general. The focus here is a traders view of supply and demand.
Pit Bull: Lessons from Wall Street's Champion Trader
by Marin S. Schwartz, Paul Flint,
Dave Morine
The Day Trader: From the Pit to the PC
by Lewis Borcellino w/ Patricia Commins ...
Pit
The area on the trading floor of some exchanges where trading in futures or options contracts is conducted by open outcry.
Pleadings ...
PIT - The area on an exchange floor where futures trading takes place.
PRICE LIMIT - The maximum price advance or decline from the previous day's settlement price permitted for a commodity in one trading session by the rules of the exchange.
Each pit is divided into segments designated for different contract delivery months. The lead month (the month closest to expiration - and usually the most actively traded) requires the most space.
Trading pit / Pit
A specific location on the trading floor of an exchange designated for the trading of a specific option class or stock.
Transaction costs ...
Automatic Pit Trading
Automatic Investment Plan
Authorized Stock
Authorized Participant
Australian Securities Exchange ...
CTI1 - On-Floor Pit Traders, often simply referred to as Locals.
CTI2 - Commercial Clearing Member Traders e.g. agricultural hedgers, banking houses etc, often referred to as Commercials ...
Oftentimes, this term applies to a limit order which was unable to be totally filled due to a lack of other parties in the trading pit willing to buy or sell at that price.
With that her self-esteem and self-confidence went down the pit. She was depressed. She attempted suicides several times and was given psychiatric treatments.
Some had their start in the futures pit, others in the academic halls, and others still in mixed and varied occupations. Despite these different beginnings, all are alike in that they demonstrate an aptitude for trading futures.
^ Martin Schwartz, Paul Flint, Dave Morine, Pit Bull: Lessons from Wall Street's Champion Day Trader, pg. 171, HarperBusiness, 1999 ISBN 0887309569
^ Caisse d'Epargne chairman resigns after trading loss, Reuters, October 19, 2008 ...
When a trade is entered, the order goes into the pit and is represented there, free to be taken by any other market participant. We can all see what is happening, we trade with the same information and with the same advantages/disadvantages.
Beadblasting, usually only done on metal yo-yos, is abrasive blasting the yo-yo with glass beads to slightly pit the surface improving grinds.
Mediablasting, When other forms of media are used other than beads as a surface on yoyos.
The probability integral transformation Z (PIT) of the data under the estimated distributions should be uncorrelated and uniformly distributed.
The trading floor is often referred to as the pit of a stock exchange because it is where all the heavy work is done.
Futures exchanges are regulated by strict guidelines, both imposed by the government and internally, and they are require that trading is done "in the pit", ...
The trader in a pit of a commodity exchange who buys and sells for his or her account.
Locked Limit
A market that, if not restricted, would seek price equilibrium outside the limit but, instead, moves to the limit and ceases to trade.
paper Customer buy and sell orders coming to a trading pit. PCS Options The CBOT's option contracts with the underlying Property Claims Service (PCS) index.
A proposed class action lawsuit would pit more than a million female employees against the corporate giant.
Broker's Deck Orders physically held by the floor broker in the trading pit.
Bull Market A securities market characterized thus on rising prices.
Buy and Hold The acquisition of a tradable for the long term rather than quick turnover.
A declaration that market conditions in the futures pit are so disorderly temporarily to the extent that floor brokers are not held responsible for the execution of orders.
Federal Reserve Board ...
An order which must be entered for trading, normally in a pit three times, if not filled is immediately cancelled.
Fill or Kill:
A futures contract based on a financial instrument.
Floor traders (locals). Exchange members who execute their own trades by being physically present in the pit, or place for futures trading.
Foreign exchange. The mechanism that values foreign currencies in terms of another currency.
Local: The trader in a pit of a commodity exchange who buys and sells for his or her account. An independent trader on an exchange. Similar to a market maker but who trades primarily for himself/herself.
Fill or Kill - An order which must be entered for trading, normally in a pit three times, if not filled is immediately canceled.
Market Reporter: A person employed by the exchange and located in or near the trading pit who records prices as they occur during trading.
OPEN OUTCRY Method of trading any commodity where dealers face each other in a dealing ring or pit and there is direct communication. Contrast: Screen Trading.
(2) A term for an exchanges trading area (cf. screen based trading), normally the trading area is referred to as a pit in the commodities and futures markets.
Open Outcry
A public auction method of trading conducted by calling out bids and offers across a trading ring or pit and having them accepted.
A type of futures market that occurs when a single traded price is unavailable because of the rapid and large number of transactions occurring in the pit or ring.
Featherbedding ...
Meanwhile, the constantly changing Web constantly provides new research and buying opportunities for options investors. To learn more about the intersection of the Web and the options pit, please read these recent articles from TheStreet.com.
(1) An agreement with a counterparty that sets a lower limit to interest rates for the floor buyer for a stated time. (2) A term for an exchanges trading area (cf. screen based trading), normally the trading area is referred to as a pit in the ...
businessman found himself addicted to the heady thrill of buying and selling at lighting speed, and nearly sacrificed his health and life in the process. Martin Schwartz detailed his accomplishments and also his failures in the book entitled "Pit ...
The only problem with this approach is, if the trader's hasty decision turns out to be wrong, they are going to add a double sized loss to what they already lost. This turns revenge trading into a never ending pit of bigger and bigger trades until a ...
you at some time decide to trade in futures contracts, either for speculation or in connection with a risk management strategy, your orders to buy or sell would be communicated by phone from the brokerage office you use and then to the trading pit or ...
We conduct regular family seminars (One of which was televised in 10 episodes on national TV in Mongolia!), as we feel that a strong family structure is one of the most important steps in the ladder out of the poverty pit.
next few days the stock plummets back to sub-penny land almost as fast as the pit in your stomach
develops as you come to the devastating conclusion that selling the stock now would not even yield
enough to cover the commission.
Out Trade: A mismatched trade between two traders in the pit, and which is settled the next day.
Outdata: The result stemming from a statistical test.
Outlier: A data point notably further out from the central value than the others.
 See also: Trading, Market, Future, Exchange, Futures
  
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