How do people trade in the pits?

Discussion in 'Trading' started by cashmoney69, Mar 12, 2008.

  1. jjk2

    jjk2

    so today, where is he now this legend ?
     
    #81     Mar 13, 2008
  2. I believe that he is still on the NYMEX, but he might be spending more time with his family.
    He goes by the name of "Fitzy".

    You can always "lease" out your seat for 6 months at a time and make a ton of money just off the lease.

    :)
     
    #82     Mar 13, 2008
  3. There is a waiting list for a NYMEX seat these days. If you had one to lease out you'd want to be using it these days.


    Loads of paper.
     
    #83     Mar 13, 2008
  4. Minetoo

    Minetoo

    #84     Mar 13, 2008
  5. jjk2

    jjk2

    btw what are these seats? are they like shares in the exchange?
     
    #85     Mar 13, 2008
  6. Very true.

    But if you are 48 years old and need a small "vacation" from your last 15-20 years as a trader, the amount of income that the lease generates is very substantial. Roughly 2% of the most recent membership sale.
    :)
     
    #86     Mar 13, 2008
  7. Its a royal PITA to lease out your seat for 6 months...
     
    #87     Mar 13, 2008

  8. Yea there are no more seats per se, since the exchanges demutualized they no longer called seats
     
    #88     Mar 13, 2008
  9. Yes, the term "seat" is synonymous with membership. And the capital requirement of any member trading on the NYMEX floor ( for example ) is $50,000 while the COMEX requirement is only $25,000.

    In the end, it is the Clearing Firm that winds-up "guaranteeing" the member.
    They are on the hook for any and all unsatisfied financial obligations of the lessee or permit trader to the Exchange and its Members.

    See the following weblink for the latest prices for NYMEX and COMEX membership:

    http://www.nymex.com/ss_bids_offers.aspx
     
    #89     Mar 13, 2008
  10. jjk2

    jjk2

    this is crazy! how does one maintain such massive risk exposure for a long time? but i guess its possible out of the millions of traders a guy like that is certainly possible.
     
    #90     Mar 13, 2008