Jump to content

Welcome to the new Traders Laboratory! Please bear with us as we finish the migration over the next few days. If you find any issues, want to leave feedback, get in touch with us, or offer suggestions please post to the Support forum here.

  • Welcome Guests

    Welcome. You are currently viewing the forum as a guest which does not give you access to all the great features at Traders Laboratory such as interacting with members, access to all forums, downloading attachments, and eligibility to win free giveaways. Registration is fast, simple and absolutely free. Create a FREE Traders Laboratory account here.

diablo272

Floor Traders

Recommended Posts

I've had the following questions regarding floor trading for a while now:

 

1. In the case of index futures, do the floor traders trade the full sized contracts? I'm guessing they can't trade the e-minis since I thought they were supposed to be fully electronic through Globex only. Either way, do we as screen traders (retail or institutional), have access to floor trade data? That is, if a floor trader makes a trade, would a screen trader be able to see it on T&S? When would it show up (I'm guessing there would be significant delay)? Does the price action on the floor have an effect on the price of the instruments we screen traders have access to? Or is it like the floor is its won market, and retail is different? I am asking about floors with a pit specifically, because I think exchanges like the NYSE don't have pits where trading takes place.

 

2. I realized I included all of my questions in #1.

 

Thanks!

Share this post


Link to post
Share on other sites
I've had the following questions regarding floor trading for a while now:

 

1. In the case of index futures, do the floor traders trade the full sized contracts? I'm guessing they can't trade the e-minis since I thought they were supposed to be fully electronic through Globex only. Either way, do we as screen traders (retail or institutional), have access to floor trade data? That is, if a floor trader makes a trade, would a screen trader be able to see it on T&S? When would it show up (I'm guessing there would be significant delay)? Does the price action on the floor have an effect on the price of the instruments we screen traders have access to? Or is it like the floor is its won market, and retail is different? I am asking about floors with a pit specifically, because I think exchanges like the NYSE don't have pits where trading takes place.

 

2. I realized I included all of my questions in #1.

 

Thanks!

 

Here's what I've seen and been told from guys in the business:

 

FLOOR TRADERS: While they are trading on the floor and may be trading pit sized contracts, they can in fact trade electronically as well. If memory serves, you can hear this being mentioned on a squawk service from time-to-time. I was told this from one of the creators of the T4 software that I used previously to moving to OEC. They actually created T4 for the guys in the pits and then branched out to retail.

 

In order for you to see the trade, you would need data on the pit traded contracts or know when a floor trader was using the electronic version.

 

As for the movements in the markets - pit vs. electronic - they are similar, but don't move in perfect harmony. For example, the S&P pit contract moves in .10 increments, while the ES moves in .25.

 

If you are wanting to know when these guys are trading w/o being there, my best guess is that a squawk service is the closest thing you will get - but bear in mind just b/c you might hear that Goldman is buying does not mean the market is going to go up right then and there. Maybe Goldman is unloading some shorts, maybe they are building a multi-week position, maybe their stop is at a level that you could not possibly stomach... I personally never got anything from a squawk.

 

Depending on your broker or data service, you might have pit traded data available or could add it on. Bear in mind that the volume on the pit traded contracts is significantly lower than the e-versions.

Share this post


Link to post
Share on other sites

Diablo,

 

The floor traders do have access to the mini via handheld units and they also have clerks that can place emini orders for them. The floor has a major influence on the screen price at times and we cover this in the squawk service we provide from the floor. Please call me if you would like to discuss this topic further. Ben 773-580-7576

Share this post


Link to post
Share on other sites
Diablo,

 

The floor traders do have access to the mini via handheld units and they also have clerks that can place emini orders for them. The floor has a major influence on the screen price at times and we cover this in the squawk service we provide from the floor. Please call me if you would like to discuss this topic further. Ben 773-580-7576

 

Ben - did you guys ever create a 'how to use our service' guide? I thought a number of months back you had mentioned something about doing a guide or some videos or something so that guys like me could see what value a squawk provides. I could be wrong, but I thought in another thread this was brought up and I don't recall seeing any updates.

 

Thanks.

Share this post


Link to post
Share on other sites

Also don't forget that with most index futures the different flavours are fungible (mutually substitutable). However ES and SP (for example) are different instruments and trades are reported separately. Unless things have changed SP trades must be reported within 'X' minutes. X is relaxed to 'Y' if a market is declared as 'fast'.

 

Last time I watched both ES & S&P (which was a long time ago when the big contract was clearly the king), it was like watching an elephant (S&P) with flies (ES) on it's back. It would be interesting to compare now.

Share this post


Link to post
Share on other sites

The SP and ES can never get far away from each other as there are many arbitrage traders. They work in pairs communicating with radio head sets, one in the pit and the other sat in an office with electronic access.

 

Mainly they are just looking to get the 5 cents offered in the different tick sizes. Eg. buy 827.70 in the pit and sell 5x as many at 827.75 in the emini. As Ben so succinctly puts it "picking up nickels in front of a steamroller".

 

It's difficult to which leads the other as action in one will always be followed by the other. So I think they take turns depending on where the big players choose to strike.

 

I used Traders Audio for a long time and learned a lot about how trading works from Ben's commentary. The trading style I use now means I now longer use it but it was a valuable part of my education.

Share this post


Link to post
Share on other sites

We have done a few tutorials. The links are below. We also post regularly updated videos on YouTube - tradersaudio's Channel[/media]

 

 

[ame=http://www.youtube.com/watch?v=L1ET89yymLY]YouTube - Squawk Tutorial - SIXTH - supply and demand[/ame]

 

[ame=http://www.youtube.com/watch?v=DydWmbcfgaE]YouTube - Squawk Tutorial - FIFTH - top trading rules[/ame]

 

[ame=http://www.youtube.com/watch?v=PffkcdSEHjs]YouTube - Squawk Tutorial - THIRD - million dollar secret[/ame]

 

[ame=http://www.youtube.com/watch?v=t2wICn2Q9Y0]YouTube - Squawk Tutorial - FOURTH - are you abnormal[/ame]

 

[ame=http://www.youtube.com/watch?v=OqhYo1HpTkc]YouTube - Squawk Tutorial - SECOND - squawk to exit trades[/ame]

[ame=http://www.youtube.com/watch?v=8W0J3pDiOHg]YouTube - Squawk Tutorial - FIRST - what is squawk[/ame]

 

Edited by Soultrader

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.
Note: Your post will require moderator approval before it will be visible.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.


  • Topics

  • Posts

    • NFLX Netflix stock watch, local support and resistance areas at 838.12 and 880.5 at https://stockconsultant.com/?NFLX
    • NFLX Netflix stock watch, local support and resistance areas at 838.12 and 880.5 at https://stockconsultant.com/?NFLX
    • Hello citizens of the U.S. The hundred year trade war has leaked over into a trading war. Your equity holdings are under attack by huge sovereign funds shorting relentlessly... running basically the opposite of  PPT operations.  As an American you are blessed to be totally responsible for your own assets - the govt won’t and can’t take care of you, your lame ass whuss ‘retail’ fund managers go catatonic  and can't / won’t help you, etc etc.... If you’re going to hold your positions, it’s on you to hedge your holdings.   Don’t blame Trump, don’t blame the system, don’t even blame the ‘enemies’ - ie don’t blame period.  Just occupy the freedom and responsibility you have and act.  The only mistake ‘Trump’ made so far was not to warn you more explicitly and remind you of your options to hedge weeks ago.   FWIW when Trump got elected... I also failed to explicitly remind you... just sayin’
    • Date: 7th April 2025.   Asian Markets Plunge as US-China Trade War Escalates; Wall Street Futures Signal Further Turmoil.   Global financial markets extended last week’s massive sell-off as tensions between the US and its major trading partners deepened, rattling investors and prompting sharp declines across equities, commodities, and currencies. The fallout from President Trump’s sweeping new tariff measures continued to spread, raising fears of a full-blown trade war and economic recession.   Asian stock markets plunged on Monday, extending a global market rout fueled by rising tensions between the US and China. The latest wave of aggressive tariffs and retaliatory measures has unnerved investors worldwide, triggering sharp sell-offs across the Asia-Pacific region.   Asian equities led the global rout on Monday, with dramatic losses seen across the region. Japan’s Nikkei 225 index tumbled more than 8% shortly after the open, while the broader Topix fell over 6.5%, recovering only slightly from steeper losses. In mainland China, the Shanghai Composite sank 6.7%, and the blue-chip CSI300 dropped 7.5% as markets reopened following a public holiday. Hong Kong’s Hang Seng Index opened more than 9% lower, reflecting deep concerns about escalating trade tensions.           South Korea’s Kospi dropped 4.8%, triggering a circuit breaker designed to curb panic selling. Taiwan’s Taiex index collapsed by nearly 10%, with major tech exporters like TSMC and Foxconn hitting circuit breaker limits after each fell close to 10%. Meanwhile, Australia’s ASX 200 shed as much as 6.3%, and New Zealand’s NZX 50 lost over 3.5%.   Despite the escalation, Beijing has adopted a measured tone. Chinese officials urged investors not to panic and assured markets that the country has the tools to mitigate economic shocks. At the same time, they left the door open for renewed trade talks, though no specific timeline has been set.   US Stock Futures Plunge Ahead of Monday Open   US stock futures pointed to another brutal day on Wall Street. Futures tied to the S&P 500 dropped over 3%, Nasdaq futures sank 4%, and Dow Jones futures lost 2.5%—equivalent to nearly 1,000 points. The Nasdaq Composite officially entered a bear market on Friday, down more than 20% from its recent highs, while the S&P 500 is nearing bear territory. The Dow closed last week in correction. Oil prices followed suit, with WTI crude dropping over 4% to $59.49 per barrel—its lowest since April 2021.   Wall Street closed last week in disarray, erasing more than $5 trillion in value amid fears of an all-out trade war. The Nasdaq Composite officially entered a bear market on Friday, sinking more than 20% from its recent peak. The S&P 500 is approaching bear territory, and the Dow Jones Industrial Average has slipped firmly into correction territory.   German Banks Hit Hard Amid Escalating Trade Tensions   German banking stocks were among the worst hit in Europe. Shares of Commerzbank and Deutsche Bank plunged between 9.5% and 10.3% during early Frankfurt trading, compounding Friday’s steep losses. Fears over a global trade war and looming recession are severely impacting the financial sector, particularly export-driven economies like Germany.   Eurozone Growth at Risk   Eurozone officials are bracing for economic fallout, with Greek central bank governor Yannis Stournaras warning that Trump’s tariff policy could reduce eurozone GDP by up to 1%. The EU is preparing retaliatory tariffs on $28 billion worth of American goods—ranging from steel and aluminium to consumer products like dental floss and luxury jewellery.   Starting Wednesday, the US is expected to impose 25% tariffs on key EU exports, with Brussels ready to respond with its own 20% levies on nearly all remaining American imports.   UK Faces £22 Billion Economic Blow   In the UK, fresh research from KPMG revealed that the British economy could shrink by £21.6 billion by 2027 due to US-imposed tariffs. The analysis points to a 0.8% dip in economic output over the next two years, undermining Chancellor Rachel Reeves’ growth agenda. The report also warned of additional fiscal pressure that may lead to future tax increases and public spending cuts.   Wall Street Braces for Recession   Goldman Sachs revised its US recession probability to 45% within the next year, citing tighter financial conditions and rising policy uncertainty. This marks a sharp jump from the 35% risk estimated just last month—and more than double January’s 20% projection. J.P. Morgan issued a bleaker outlook, now forecasting a 60% chance of recession both in the US and globally.   Global Leaders Respond as Trade Tensions Deepen   The dramatic market sell-off was triggered by China’s sweeping retaliation to a new round of US tariffs, which included a 34% levy on all American imports. Beijing’s state-run People’s Daily released a defiant statement, asserting that China has the tools and resilience to withstand economic pressure from Washington. ‘We’ve built up experience after years of trade conflict and are prepared with a full arsenal of countermeasures,’ it stated.   Around the world, policymakers are responding to the growing threat of a trade-led economic slowdown. Japanese Prime Minister Shigeru Ishiba announced plans to appeal directly to Washington and push for tariff relief, following the US administration’s decision to impose a blanket 24% tariff on Japanese imports. He aims to visit the US soon to present Japan’s case as a fair trade partner.   In Taiwan, President Lai Ching-te said his administration would work closely with Washington to remove trade barriers and increase purchases of American goods in an effort to reduce the bilateral trade deficit. The island's defence ministry has also submitted a new list of US military procurements to highlight its strategic partnership.   Economists and strategists are warning of deeper economic consequences. Ronald Temple, chief market strategist at Lazard, said the scale and speed of these tariffs could result in far more severe damage than previously anticipated. ‘This isn’t just a bilateral conflict anymore — more countries are likely to respond in the coming weeks,’ he noted.   Analysts at Barclays cautioned that smaller Asian economies, such as Singapore and South Korea, may face challenges in negotiating with Washington and are already adjusting their economic growth forecasts downward in response to the unfolding trade crisis.           Oil Prices Sink on Demand Concerns   Crude oil continued its sharp slide on Monday, driven by recession fears and weakened global demand. Brent fell 3.9% to $63.04 a barrel, while WTI plunged over 4% to $59.49—both benchmarks marking weekly losses exceeding 10%. Analysts say inflationary pressures and slowing economic activity may drag demand down, even though energy imports were excluded from the latest round of tariffs.   Vandana Hari of Vanda Insights noted, ‘The market is struggling to find a bottom. Until there’s a clear signal from Trump that calms recession fears, crude prices will remain under pressure.’   OPEC+ Adds Further Pressure with Output Hike   Bearish sentiment intensified after OPEC+ announced it would boost production by 411,000 barrels per day in May, far surpassing the expected 135,000 bpd. The alliance called on overproducing nations to submit compensation plans by April 15. Analysts fear this surprise move could undo years of supply discipline and weigh further on already fragile oil markets.   Global political risks also flared over the weekend. Iran rejected US proposals for direct nuclear negotiations and warned of potential military action. Meanwhile, Russia claimed fresh territorial gains in Ukraine’s Sumy region and ramped up attacks on surrounding areas—further darkening the outlook for markets.   Always trade with strict risk management. Your capital is the single most important aspect of your trading business.   Please note that times displayed based on local time zone and are from time of writing this report.   Click HERE to access the full HFM Economic calendar.   Want to learn to trade and analyse the markets? Join our webinars and get analysis and trading ideas combined with better understanding of how markets work. Click HERE to register for FREE!   Click HERE to READ more Market news.   Andria Pichidi HFMarkets   Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in Leveraged Products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.
    • AMZN Amazon stock watch, good buying (+313%) toi hold onto the 173.32 support area at https://stockconsultant.com/?AMZN
×
×
  • Create New...

Important Information

By using this site, you agree to our Terms of Use.