Exactly. Traders will then make forward looking implied guestimates based on directional assumptions......
Right. So, the floor still has the issue of stale sheets once the market opens, but presumably, those on the screen have a B/S that updates in real-time? I can't imagine real-time B/S is not available, but perhaps I'm wrong.
Some locals even have laptops strapped around their necks ala' guitars in lieu of "sheets." Most groups just ask that their traders "get the edge." Guys upstairs take care of the hedging. Obviously risk is defined as a group rather than by individual MM.
And speaking of those hedge guys upstairs, take a look at the forums section of Wilmott, a site for quants. The market math spoken there is from a different planet, and with so much information, one can talk himself into or out of any position. I'm not knocking them, but time will tell if they handle any sustained surge in general market vol. Maybe "gut" traders will be in vogue in 5 years.