http://www.nymex.com/media/102507.pdf see page 13. Dec cude oil 2007 282,486 total volume (dec 07) 266,873 Electronic (eth) 15,613 pit trades in (dec 07) 18:1 ratio the question is how many of the electronc trades were done by traders in the pit? A large percentage is a valid assumption. As far as 100 lot scalps.. if you filter ticks.. for trades over 100 .. there are very very few throughout teh day.. typically less than 50
It was meant as a light joke bros. As far as floor traders having an edge over me, I highly doubt it. As far as those guys still in the pits, maybe they are there because they actually enjoy it. I personally wouldn't....all the people would aggravate me.
Or if nobody on the floor can make money anymore. Even less money...and the trend will continue to obsolescence. It's similar to NYSE...the specialist system is becoming something of the past, guys can't make money anymore. Institutions go where the money is, and I can guarantee you if it's cheaper and more efficient to do it electronically (ie. ICE or GLOBEX), they'll go there. Nobody really cares about the gas station attendant who pumps the gas, unless he's making you money... then they'll consider keeping him around. This 'floor traders are useful and necessary to the market...keep us around mentality' is sort of a red herring in my opinion, put forth by the guys trying to save their own ass. Aren't some of the large european futures exchanges COMPLETELY electronic with no humans?
Yes, there are. Eurex. As you read this entire thread, it's important to remember that 90% of all daytraders, whether pit or behind the screen, lose money. And a local does not have an edge like a NYSE specialist who has the "book."
On the subject of whether the floor is obsolescent - you can look at it from a business perspective. The original purpose of the trading floor/exchange was to provide a means to have a market at all -- there were no electronic markets. The floor traders were the market. Now that electronic trading is nearly universal - which is the more cost effective and efficient way to execute? People get paid a lot more than computers. The business will go to wherever the competitive advantage exists, in this case electronic trading. The trading floors are all on the way out. Nonetheless, there is an advantage to having a well organized and closely linked team working orders in a physical location (over an individual trying to absorb it all remotely), and it may be enough of an advantage to keep traders on the floor making the electronic markets for a while, IMO.
Oil has been on a real tear this week .. amazing volume and price moves. Oil typically will continue its move into the afterhours trading after a strong move.. i.e. up $ 4.00 today and now oil up $ 1.68 in after hours trading. Eventually though the people who bought oil after hours and cleared out a lot of buy stops.. then realize they must get out of their longs which moved the market or be eaten alive in the AM. (obviously oil should not be at $ 96.24 fundamentaly .. it's there on thin volume in after hours.. anyway.. i included a 1 second chart with volume to let you "see" what is happening in the oil market due to large volume pushing around prices.. during the day there is too much noise and volume to see it this easily.. Think about it this way.. you have millions in your account .. you can fire off 100 lots in the after hours which get partial fills.. 23, 17 ,10, 5 ,28 , maybe 44.. then as you move the thin market higher.. you hit buy stops from people who got short This afternoon and shouldn't have! Other "night traders" also jump on board and guess what.. you put out a 100 lot and in less than one second yes one second you triggered over 430 contracts to trade! Which in one second took Dec crude 2007 up 45 cents a contract!!!!!! look at the chart.. and remember without stops especially at night it can be like playing equity roulette.. same stuff happens durig day session just takes more volume to move the price.. thats why you realize 10 and 20 cent 1 second spikes. They are much harder to see.. hope this helps well check you post .. i will put the chart there
Are you writing a term paper.....come on now. What significance is a one second chart....please tell me?