open outcry

(redirected from Outcry Market)

Open Outcry

A system of trading on an exchange in which members stand on the trading floor and make orders to each other by crying aloud. Some open outcry systems have developed special sign languages so they can make and fill orders without needing to be heard over the noise on the trading floor. All exchanges were originally open outcry, but many have gradually shifted toward electronic trading.

open outcry

A public auction in which trading is conducted by calling out bids and offers. Open outcry retains its popularity on futures and options exchanges such as the Chicago Board of Trade and the New York Board of Trade despite the introduction of electronic trading systems. Some traders contend that open outcry offers better liquidity with the chance to obtain a better price. Compare auction market, dealer market.

Open outcry.

When exchange-based commodities traders shout out their buy and sell orders or use a combination of words and hand signals to negotiate an order, it's known as open outcry.

When someone who shouts an offer to buy and someone who shouts an order to sell name the same price, a deal is struck, and the trade is recorded. Open outcry is one type of auction.

References in periodicals archive ?
With tight spreads and a clear view of the market, the hustle and bustle of the open outcry market was perfectly suited for many quick entries and exits for five or ten basis points at a time.
For natural gas and other energy commodities that trade on NYMEX, the markets are evolving, continuing actively with traditional open outcry markets, but expanding quickly into the online and computer arenas (overnight trading).
Trading on the open outcry markets, where traders do business on the exchange floor, was suspended but resumed at 4pm, said a IPE spokeswoman.
As a result of the acquisition, optionsXpress customers gained 24-hour access to 25 exchanges and over 300 futures products worldwide, in both electronic and open outcry markets.
Commodity News for Tomorrow" is emailed to subscribers every afternoon after the CBOT's open outcry markets close for the day.