open outcry

Open Outcry

A method of trading on a commodity exchange by making verbal bids and offers in the trading pits.

Notes:

A contract is made if one trader cries out that he wants to sell at a certain price and then another trader yells out that he will buy at that same price.

See also: Commodity, Pit

---

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.