What does Open Outcry mean?
Open Outcry is a method of communication used in trading on the exchanges for stocks, commodities or futures. It involves taking verbal bids and offers as well as hand signals to express trading information in the trading pits where trading takes place. Hence, it is also called as “pit trading”.
Futures Knowledge Explains Open Outcry
In such a scenario, a trader will shout out that he wants to sell at a certain price and another trader would shout out that he wants to buy at that price. This method of trading is slowly fading out as now most of the trades are done on electronic platform. Some exchanges still using this system are the Chicago Mercantile Exchange, New York Mercantile Exchange, etc.