open outcry investment & finance definition
A
method for conducting trades that involves traders shouting out offers and bids
in a pit where futures and options are being sold. Open outcry also is used on
some foreign stock and futures exchanges. The London Metal Exchange mixes two
short periods of open outcry with trading that occurs over the telephone or
through an electronic trading system.
See open outcry in Wall Street Words
A public auction in which trading is conducted by calling out bids and offers. Open outcry retains its popularity on futures and options exchanges such as the Chicago Board of Trade and the New York Board of Trade despite the introduction of electronic trading systems. Some traders contend that open outcry offers better liquidity with the chance to obtain a better price. Compare
auction market,
dealer market.
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