Becoming a pit trader
- Thread starter ertrader
- Start date
Some Points:
I was a Bond and Note futures trader at the CBOT. My experience is more relative to that domain. The pit REALLY sucks there.
My business partner traded S&Ps 200 lots at-a-whack in pit in the 80's and early 90's. And that was when the index was much smaller, and 200 was quite a chunk of exposure.
We have both been trading eletronically for several years.
I will vouch for myself and say that I make more money than I ever made on the floor, and on a more consistent basis. The reasons distill down to a few key points: I see order flow I never saw on the floor, and if I'm first in the order book I will get them first. Also, if I want all of them I can take all of them. There is also a significant information advantage off the floor. Finally, there are many more spread and arbitrage opportunities.
Again, good luck... you'll need it.
I was a Bond and Note futures trader at the CBOT. My experience is more relative to that domain. The pit REALLY sucks there.
My business partner traded S&Ps 200 lots at-a-whack in pit in the 80's and early 90's. And that was when the index was much smaller, and 200 was quite a chunk of exposure.
We have both been trading eletronically for several years.
I will vouch for myself and say that I make more money than I ever made on the floor, and on a more consistent basis. The reasons distill down to a few key points: I see order flow I never saw on the floor, and if I'm first in the order book I will get them first. Also, if I want all of them I can take all of them. There is also a significant information advantage off the floor. Finally, there are many more spread and arbitrage opportunities.
Again, good luck... you'll need it.
If your going to do it, be nimble, these people will try to test
your toughness for at least 3 months after you start trading, They personally have made more money thenyou can imagine If you have golbex terminal nearby,that will be good as it will help you see the arbitrage relationships..,
by the way, how do arb clerks come into play with what you will be doing??-one advantage you can get is seeing the fixed income boards and fx . Another is seeing peples eyes/feeling the panic/greed much more than your used to. Its exciting, stay away from the coke and booze,stick with the awwwwweeeesoommeee food there----fontanos,potbellis,mrbeef I miss that stuff
your toughness for at least 3 months after you start trading, They personally have made more money thenyou can imagine If you have golbex terminal nearby,that will be good as it will help you see the arbitrage relationships..,
by the way, how do arb clerks come into play with what you will be doing??-one advantage you can get is seeing the fixed income boards and fx . Another is seeing peples eyes/feeling the panic/greed much more than your used to. Its exciting, stay away from the coke and booze,stick with the awwwwweeeesoommeee food there----fontanos,potbellis,mrbeef I miss that stuff
I know this is off the main topic but it is related news
from the NYMEX exchange
"Beginning this summer, the Exchange will launch new investment opportunities in the energy markets with its e-miNY energy futuressm contracts, fractional versions of the highly liquid crude oil and natural gas futures contracts. The contracts will trade on the Chicago Mercantile Exchange, Inc. (CME) GLOBEX® electronic trading platform; trades will clear through the New York Mercantile Exchange. "
ps ... being an arb clerk is not so easy ... I tried it yrs ago standing next to a crude oil broker ... I found it much easier to keep track of the brokers cards and listening to the markets bids and offers than flash quotes by hand
good luck ...
from the NYMEX exchange
"Beginning this summer, the Exchange will launch new investment opportunities in the energy markets with its e-miNY energy futuressm contracts, fractional versions of the highly liquid crude oil and natural gas futures contracts. The contracts will trade on the Chicago Mercantile Exchange, Inc. (CME) GLOBEX® electronic trading platform; trades will clear through the New York Mercantile Exchange. "
ps ... being an arb clerk is not so easy ... I tried it yrs ago standing next to a crude oil broker ... I found it much easier to keep track of the brokers cards and listening to the markets bids and offers than flash quotes by hand
good luck ...
Pabst,
I totally agree with your observations. I traded the big contract for years by calling the floor and would not dream of doing it now. Locals cannot survive trading with each other and getting killed by institutions. They need paper and paper is going to globex.
I totally agree with your observations. I traded the big contract for years by calling the floor and would not dream of doing it now. Locals cannot survive trading with each other and getting killed by institutions. They need paper and paper is going to globex.