 |
 |
|
|
As mad as it may seem to an outsider, the use of hand signals provides an efficient and effective way to communicate in the pits. This unusual sign language lets traders and other floor employees know how much is being bid and asked, how many contracts are at stake, the expiration months, the types of orders and the status of those orders. The signals are the favored form of floor communication, especially in the financial futures pits, for three main reasons:
1) Speed and efficiency. Hand signals enable fast communication over long distances (as much as 30 or 40 yards) between the pits and order desks and within the pits themselves.
2) Practicality. Hand signals are more practical than voice communication because of the number of persons on the floor and the almost deafening noise level.
3) Confidentiality. Hand signals make it easier for customers to remain anonymous, because large orders do not sit on a desk, subject to accidental disclosure.
See an entertaining introduction to hand signals used at Chicago Mercantile Exchange.
|
|
|
