Moneyzine
Contents
/Investment Guides /Open Outcry

Open Outcry

Moneyzine Editor
Author: 
Moneyzine Editor
1 mins
September 20th, 2023
Advertiser Disclosure

Definition

The term open outcry refers to a communication method occurring between members of a stock or futures exchange. Open outcry uses a combination of shouting and hand signals to exchange buy and sell order information.

Explanation

Open outcry is a method of communication that occurs on a trading floor, or pit, where an exchange of buy and sell data facilitate the trading of securities, such as stocks, in addition to commodities. When a trader wants to sell a security, they would shout out the price. If another trader is willing to purchase the security at this price, they would shout back in response. Hand signals were used to communicate both sales volumes and timing in the case of futures.

Electronic trading systems are used by many exchanges today, thereby making open outcry an obsolete method of communication. Not only is the exchange of information electronically more efficient, it reduces cost as well as the time it takes to fill an order.

Related Terms

technical analysis, naked option, married put, listed option

Explore Investing Further

Related Content

  • Biden Or Trump: Who Is Better For The Economy And Stocks?
    Yup. This is one of those articles. It's an election year, and here in the U.S., we get to decide which old dude who’s been alive long enough to remember when there were only 48 states in the U.S. will be the leader of the free world.
    March 19th, 2024
  • When it comes to strategic business planning, accounting is front and center, shaping the course of action. At least it should be.
    March 14th, 2024
  • DRIP Brokers: Best Brokers for Dividend Investing for November 2024
    Reinvesting dividends could mean compound growth for your portfolio. But reinvesting them manually can be a hassle. This is why you could benefit from a dividend reinvestment plan (DRIP).
    March 12th, 2024
  • How To Invest in Real Estate Without Becoming a Landlord
    We all know that in order to build wealth and prepare for retirement, investing is the key. However, it can be hard to figure out what to invest in and how to put your money to good use. One of the most talked about ways to build wealth is owning property and being a landlord to bring in passive income. But what if you don’t want to do that? You can still invest in real estate!
    March 6th, 2024
  • Investing In Nature: The Closest You'll Get To Your Money Growing On Trees
    ESG (Environmental, Social, and Governance) has become a polluted word for many traders and investors - but that doesn't mean it's going completely away. Nor does that mean you can't profit from nature or sustainable practices. But there are some opportunities in the regenerative ag, conservation, and green real estate spaces.
    February 29th, 2024

Contributors

Moneyzine 2024. All Rights Reserved.