How is futures trading conducted?
Most futures trading is done through electronic trading systems on which bids and offers are posted on computer terminals and trades executed, either through terminals or via telephone. “Open-outcry” trading occurs where traders stand in designated areas, configured as pits or rings, and call out bids and offers to buy and sell during the “trading day,” as defined by the exchange. Some futures exchanges are totally electronic; some exchanges employ both methods for one or more contracts, and other exchanges use electronic trading systems to provide market access during hours the open-outcry market is closed.
