CBOT Trading Soybean market pit trading.

[Issara86]

Long live the open cry.

[dobrik900]

дурдом.. мне проще за компом сидеь:)

[bigmaxy07]

5 at 6 1/2

[sprasher]

How the hell do people trade in this incoherent mess of an environment? Somebody give me a couple of monitors with charts on them in a quiet room.

[mredyhcapamab]

Wow, I remember when my dad traded soybeans in the pit in the 70's and 80's, it was nothing but wall to wall hands and fists and blood and screaming. No space in between people. It looks like it really did die there. :(

When I was a little girl I wanted to trade too - it looked like fun! - but my dad said no way, girls don't work the pits, not even sassy little girls like me. Well, it looks like he was right, but not in the way he imagined. *sigh*

[abortbort]

SOY SOY SOY

[rhcarrollton]

Dave Baby!!!

[thezimboman]

these guys are bananas for soybeans

[Duds47]

this is the close at quarter end so extra activity as everyone is trying to flatten the open interest and roll into the next future contract. Most of the time between open and close guys read newspapers or eff with each other. the best is when a broker would cut a shark fin out of a trading card stick it in the collar of the jacket of a runner and send the guy to pick up an order across the floor. the kid would start walking and the whole place erupted "SHARK"!!! "GET OUT OF THE WATER!!!"

[StyngRay1]

this sounds like a fucking mess. S

[joker2x]

I remember when I was in 5th grade my dad took me to the CBOT, we were talking to his friend by the bond pit near where the brokers stand, and a few brokers came out with some orders and I couldn't believe what i saw. It was like a stampede of men screaming and yelling running towards us, but at the time I thought it was the coolest thing in the world. Needless to say, I am now a trader, but I wish I had the opportunity to be in the pits.

[rocknruelps]

It took balls and passion back then to make money on the floor. Now it just takes a click. Cheaper, convenient, but boring. The eggheads won, their algorithm flashtrading rules.

For now.

[Soon2beTrader]

This is so Awesome!! Options on these contracts are still traded on the floor. On average 70% to 73% of CME/CBOT products' options are still traded on CME's floor. CME posts volume reports daily on their website.

[cantroos]

this is dumb, it's interesting to watch, but surely there's no argument for a system where people just scream at each other and write things down on a pad of paper is more efficient than a computer system which instantly matches a seller with a buyer and that's that. And yeah, for the average investor, commisions used almost make investing not worth while, whereas today even for a person who doesn't trade much or have a huge account balance, you can buy or sell for $30 or so.

[petevandebeat]

The good old time must been so cool at waalstreet.

[3of11]

How about trading in high blood pressure medication for these guys?

[Borneomann]

Look at these "happy" faces...they'll be out of work (if not already( pretty soon. Thank God for Youtube our future generations can appreciate how hard their old man worked

[mfisher761]

@Borneomann Im in this video. I worked in this pit for twelve years. I lost my job 5 months after it was shot. I HAVE NOW BEEN OUT OF WORK 3 YEARS. THANKS ELECTRONIC TRADING

[phoenixw2]

My first job.

Of course the financial pits were crazy compared to these agrics boys.

Just playing this for myself to remind me of the 7am walking into the valley of death... and that, yes, I survived it

[headbanger623]

It's like Studio 54 at 3:15

[skyer1201]

haha . very interesting

[skyer1201]

haha this is great!!!!!!!!!

[professor314]

WTF is happening? They get really excited.

[rajat30686]

holy fuck, i can see why the red and blue splashing intensifies in the last minutes of trade on my bloomberg

[miketkt20]

Rick Santelli said it best. "would you rather watch a football game on your big screen, HD tv with all of the different camera angles. Thats pit trading. or would you rather have that camera focused on the score board. thats electronic trading". makes sense

[logikos1]

So, what do you do for a living?

Well I jump up and down, wave my arms frantically, and scream at the top of my lungs. Oh, and I make 50 grand in 10 minutes.

[phoenixw2]

@logikos1

Hahaha. Another wannabe, who will never be. Because you are ignorant and have a bad attitutude, compared to people who work hard and DRIVE for success.

See you down on 3rd shift at McD's sometime eh? Come on chop chop get my order boy lol

[phoenixw2]

(Christ even at 16 I'd bought books, and worked out what a trading floor was. Anyone who talks about 'waving arms', 'screaming'.... is so detached from reality, you suspect there is little that might ever help them!

[phoenixw2]

To us that worked there, it is all crystal clear. It is you that has the problem of not understanding.

[logikos1]

You have no clue what I do, but if you did you would shut your pie hole. I'm glad you had a chance to work there. Congratulations. Maybe I saw you from the observation window.

My comment was made tongue-in-cheek, but you're wound so tight you wouldn't recongize that.

[phoenixw2]

@logikos1

Ok, well I'll take that at face value.

Yeah I don't know what you do, or care what you do - but you have not been a trader, and so I wonder why you are so eager to comment on them/it.

['Oh, and I make 50 grand in 10 minutes.'].... REALLY that is a super-retarded comment haha. You couldn't have traded for one single week in your life, and make a comment like that! Really, that is retarded!

[logikos1]

Actually I have been trading futures since 1992. Ag futures mainly. I've met a few ex pit traders over the years. They play the open and go and eat breakfast... done for the day. OK, so 50K is an exaggeration.

[kondziu160]

@logikos1 stop crying and shut up

[phoenixw2]

@logikos1

Your venom underlines your ignorance.

[bulletprooftrader]

OMG MONEY ON WTF

[noobwithanrs]

someone could get paper cut with those flying cards

[toxinism]

look at these fucks, how can you understand any of this.. its a fucking mess. They should calm the fuck down a lil bit.

[phoenixw2]

@toxinism

Oh you troll. The average person is not being asked to understand this. That's because you're average.

People like these guys get the food to food manufacturers, facilitate international trade, your car loan, insurance, mortgage, and so on. Don't like it? Well walk around wearing a jute sack then.

Just because you can't understand pit-trading means nothing. For those of us who have been there, the vid is quite a laugh

[toxinism]

u cant deny what i said so dont talk shit, it is a fuckin mess, and ur mums a troll, fuck off and tell someone who gives a fuck u knob.

[phoenixw2]

@Tox

In your own patois

ps Fuck you you toe-rag. You're probably some box-ticker civil servant on $20k a year, who trades $50 of shares a night and thinks he's doing it big, and can't work out why he's not making it. hahaha loser.

[kondziu160]

what are they writing on those pieces of paper in their hands?

[phoenixw2]

@kondziu160

The orders they're filling. When I was on the floor in London it was on cards (like big thick playing cards). So you'd get tic-tac from the pit, and then your trader would 'frisbee' from 20 away over order cards.

[eosrk]

the difference between a good trader and a bad trader is easy......John Paulson & Chuck Prince!

[GoRaidersGirl]

Im bored out of my mind and wish that this never ended. Its truely a shame what happened to our markets. Thanks CBOT share holders for wrecking it all. I guess 150 years doesnt mean shit , as long as you can cash out for a few million! Im not really as bitter as I sound Im just bored out of my mind. I could always become Pat Arbors personal driver. P.S. David Babys hair is still the worst I have ever seen and yes he does drive a used lexus. Peace out yall!!!!!!!!!!!!!!!!!!!!!!!

[GoRaidersGirl]

This video so depressing. Im here in the video back in 2006. Now I sit home every day and sell fucking vending machines at and make a shitty two hundred per machine.

[pinko1975]

stupid fat fucks!

[phoenixw2]

@pinko1975

They facilkitate your home loan, your car loan and the food on your table. Be more grateful, or just rid yourself of the things.

[pinko1975]

They are overpaid arrogant pigs.I am so grateful that they are being replaced by IT systems!

[nseanhall]

I worked in the exact spot this video was taken. You have no idea what you are talking about. Like with everything in life, there are good as well as bad people that traded in these pits. I am from the south and when I first moved to Chicago they greeted me with open arms. Just moving from pit to screen do you really think there will be a difference in the person behind the trade?

[phoenixw2]

@pinko1975

Strange, do suggest guys 'upstairs' earn less somehow? Will that make you calmer?

Arrogant. hmmm, but of course you need some guts to get on a floor and trade. It is not like being some loser spending a day behind a desk ticking forms for a living.

The pit-traders have all been progressively going 'upstairs' (pit on the floor, to PC in the office) for 20-30 years. Why does that make you happy?

[phoenixw2]

Don't you think you should work out your spite and envy?

If you think they're overpaid, well then get a job as a banker, and roll in it yourself [except you sound like a rather childish retard, and so expect you would have zero hope.... and that is why you're angry... at your own lack of opportunity...

[pinko1975]

1. I am not a retard

2. I did work my ass up in a couple of Inv. Banks one of them was also American.

3. I don't envy pit traders. Most of these people dont have a life apart from their obsolete work.

4. Most of the pit traders I met I am afraid were arrogant , maybe I met the wrong ppl?

5. Arrogance doesnt make a good trader.

[fazholio]

open outcry is just stupid however, can be very informative for a trained person.

[phoenixw2]

@fazholio

How can it be informative but stupid?

[fazholio]

It looks a little uncivilised. it requires physical dominance...what if a little guy want to trade?? make no mistake open outcry's days are numbered for better or for worse.

ECNs........

[goldenshots]

MAn isnt there a more damn civilized way to do this crap. THANK GOD for ECN's...

[dave997]

soybeans are serious business

[OilTradingAcademy]

I offer an online Oil Trading Room at my website if you're interested.

David

[WizardKing78]

Why do they shoot shredded paper into the air at end of trading?

[kondziu160]

nice :)

[ntn1987]

Random thought, why is open outcry trading still being used when there is electronic trading?

[rockymountainsunrise]

probably because you can get information from talking to and watching your fellow traders that you just can't get from a computer monitor. it's also really interesting to watch what happens AFTER the bell in this video as everyone tries to sort out all the last-second trades. this is where a lot of the fist-fights broke out (500 decembers? what ya talkin' about, ya sold em to Larry standing beside me. not to me)...

[fabianSito123]

hahahahhahaha

[FishlegsJones]

this depresses me.

open outcry RIP

[knokcs]

madhouse

[groweg]

This tape is a few years old. Bean futures volume is now 94% electronic. The pits are semi-deserted. Almost all trading is now on the Globex electronic platform. This video is a classic. I hope it is preserved for its historic interest.

[sellhi78]

Last day of trading 2006 NYE.

[headbanger623]

@groweg WHat's your source?

[groweg]

@headbanger623

You can check out the CME Group's Volume and Open Interest Report at their website. For 6/24/10 in Soybeans only 9,419 of 130,513 contracts were traded open outcry (7.2%) the rest were done electronically.

I trade very successfully professionally using a quantitative, machine learning approach but when I have a big win for fun I run this video.  It so captures the atmosphere on the trading floor before electronic trading.

[headbanger623]

@groweg Good response.

[adulby]

@groweg im 16 and i actually wish that trading had not gone electronic so quickly. when i was little and thought of the stock market as a bunch of guys yelling symbols across the floor impacting everyone in the world through sweet old capitalism it intrigued me so much. now i see how dead and dull it is today and it depresses me. I know the electronic trading has made it more profitable and more conveniant but i id rather make less and participate in good old fashion trading. Thanks for posting!

[groweg]

@adulby Electronic trading means much lower commissions (around $35 vs. $6 per trade) for off the floor traders. To trade in a pit you had to lease a seat or buy one for several hundred thousand dollars. Now you just pay a data vendor around $250 per month for your data feed and set up your account. Developing successful electronic trading strategies is very challenging and exciting, not "dead and dull". Electronic trading opens the door to your becoming a trader. 

[adulby]

@groweg i see where your coming from. I guess I ill just have to learn more before I make an accurate judgement. Thanks for the info. I do love how commission has dropped so much. It helps traders like me who might have only a efw thousand dollars in their accounts.

[skyd171]

@groweg I work in the next pit over. Options on commodities are still 75% traded in the pits. The futures pits are mostly empty

[TEBOYLO]

what these guys are doing is possible by 2 or 3 high performance Worklstations ^^

[TEBOYLO]

the common jobless of common electronic trading ^^^

EUREX is watching you ^^

[fostereric]

In Soviet Russia, soybeans trade You!

[fostereric]

Capitalism at its best

[That70sHeidi]

That was so incredibly stressful to watch, and I have no idea what's going on... whew!

[bbwbb2]

hows the ulcer Harry? doing good, hows your hypertension doing? good has't bothered me in hours. I love this stuff

[born2begawlin]

If you were to personify capitalism then ripped off all of the flesh this is what you get...this raw form of a market is absolutely electrifying to me!

[brokeinvestor]

lol im not romanian...and its dickheads like you who are so proud of your country, that make me dislike the US.

[brokeinvestor]

lol srsly, STFU no one cares about your shit bankrupt country.

[hackso01]

du-teeeee baaa la spital ca esti dus rau !

[brokeinvestor]

Dude, STFU!

[aliana27ro]

I promissed you asshole, remember:-))

te fut in gura, cacareaza peste tot pe unde postezi

[aliana27ro]

vezi sa n-o iei in cur de la vreun chinez:-)) si el spune ca are un MBA in economie:-)puah.. ce cacareaza :-)

[aliana27ro]

vezi ca Usa o cumparat-o chinezii:-))lol

[aliana27ro]

du-te si te-mpusca:-)

[SurveyOk]

wtf.....

[SpeakingMyMind7]

WOW...who do you listen to?

And how do you keep track...with a little note pad? C'mon...billions of dollars being traded this way? There's gotta be a better way to do this!

[GerritVollrath]

Does a real floor-trader made a comment to this video, or saw this video ?

[feltonw]

how inefficients this system really. we created computer for a reason.

[Stiverton]

they are more useful than computer systems because people can judge intentions behind offers and thus can make wiser decisions.

[tylermanchesteruntd]

0.0

omg. thats looks so complicated

[cartel937]

looks like fun

[TheShriekingShack]

Anyone have a site that lists all the hand signals?

[sxinthemorning]

love it, but gave up couldnt put up with the physical wrong business

[petehuss]

3:24

[brokeinvestor]

WTF they use analogue notepads to write their trades on?

[409ersMINE]

keep record of what they are doing

[brokeinvestor]

point being its not like NYSE, they have handheld computers there

[drobnyfranz]

keine panik auf der titanik jungs

[dan020350]

crazy ppl

[jdobbs2001]

wow the last like 30 seconds you see Phil from different strokes.

[norlandflagetteebo1]

I'm sticking with Forex, but I've always dreamed of being on NYSE or CBOT

[Heygawlin]

MOST traders own their OWN membership/seat at the exchanges and gamble their OWN money. That's pure profit! They trade HIGHLY "leveraged" financial contracts called futures. A single stock will flucuate in increments of a penny. A futures contract will flucuate in increments of $5-30! (depending on the commodity) They sometimes trade hundreds or even thousands of contracts at a time! do the math that's BIG MONEY! I'm 20, in college, and i trade futures as well, it's a very tough business.

[Heygawlin]

Some good traders in the CBOT bond have walked out with 4 million in one day! If you suck you could end up falling into a huge deficit within minutes and end up loosing everything you own! Those are extreme cases but i think the average decent trader makes $1,000 to !10,000 a day

[rdxpspo]

Thanks!...Sounds like a good paying job then!

[rdxpspo]

Wait a sec...is the figure you quoted just the trader's commission or is it the total profit??

[newyorkdaver]

I use the $1000 a day money management if I'm down more than $1,000. I'm done for the day.Upside let your profitable day continue. But hold on to that $1,000

[tobaccouser]

I'm an options player I double my money almost weekly, esp lately

[irncrve]

Hey...Looking for an options broker. Who do you recommend?

[dietangel]

find a better place for financial advice lol

[irncrve]

Finding a good broker is far from financial advice my man

[dietangel]

i meant don't base your investment decisions on what people say in youtube comments lol

[rdxpspo]

Hi Sellhi78, how much on average do these traders make annually? Thanks

[RedstoneBeaverShark]

I used to work about two feet from where this video was shot...for many years. Yes, many fond memories, I miss the action

[fearlessfitz]

Worked the Meal Oil pits back in the nineties, and while I don't regret my career change, I'll always remember fondly my time in the pits.

[otcderivatives]

NYBOT sucks!!! Trade cotton, coffee, sugar and FCOJ electronically, not only are the futures dead but so will the options go soon. As for the floor brokers they can shine my shoes bithces!!!!! And when they're down they can my mow my line you cocksuckers!!!1

[biaccino]

you're an idiot...the pits are going away, but futures have more volume than ever, electronically. you are a complete moron.

[otcderivatives]

Yea i said trade them "electronically", my Italian ethnic friend. Not only are the futures pits going but so will the options pits once ICE develops an e- platform for them. As for the floor brokers who will be out of a job well my prop firm would love to generate commisions off them you obsolete bastards!!!!!

[biaccino]

your quote, "not only are the futures dead but so will the options go soon." I repeat...futures are not dead...and I am not a broker.

[biaccino]

...and I welcome the day when "prop firms" call themselves what they really are...electronic brokers...you too will disappear just like other brokers in time...save your money while you can.

[nightwolf1453]

Its like a jungle, imagine the mistakes they must make just by mishearing something lol

[luridstar]

Ha ha! Good one.

[uhohlookwhoshere]

R.I.P

New York Board Of Trade (NYBOT)

Futures forever killed February 28, 2008.

[baredd79]

Jesus should come over and trash the place up.

[dhoot18]

who are they shouting at...a screen?

[sellhi78]

other traders.

[dhoot18]

why other traders, aren't they meant to be executing trades via computers and phoning. Oh maybe they all play a part in whether to buy or sell as a team, not independently. I don't know.

[dhoot18]

sellhi78 I think jonathantravis knows why they shouting at each other. But on normal trading floors there's no crazy shouting just a few highs

[sellhi78]

There is shouting on all trading floors. The shouting you hear are traders bidding and offering contracts on the open market.

[rdxpspo]

Hi Sellhi78, how much on average do these traders make annually? Thanks

[downwiz2]

this open cry system is very very efficient....believe it or not.

[felicplaques]

Wonderful scene - would dearly love to be part of it!

[billhfenner]

P.S. I love south side Johnny

[billhfenner]

you should make a video called hot chicks of the board of trade. love your friend fish!

[sellhi78]

HOW ABOUT HOT WIVES OF GUYS THAT WORK AT THE cbot.

[Parthamasiris]

Love capitalism at its best!

[aflavoura]

I wana be there!

[paupar]

"that was pretty gay" LOL!!!

[clysus]

computers cant really sense demand like outcry. outcry is the purest form of trading. computers just match buyers and sellers based on price/quantity. Their is a variable element of human patterns that exists. Trading is about to change on the nymex. i saw a guy in the silver pit try to throw a computer out the window because he tried to enter 1 long contract and ended up buying 10x the amount he wanted to.

[Indrius]

What a dumbass, cannot use computer nowadays.

[kamikazetrader]

Why isnt all trading electronic? This seems crazy to me..

[JonathanTravis]

Why dont they play the world series of poker online?

You cant sense the fear of the other traders or the confidence. This way, intimidation plays a factor.

[dhoot18]

seen..right

[RodimusConvoy]

Love it!