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Re: Differences between open outcry and electronic contracts?
open outcry is pit traded
When ever the prices diverge beween pit and electronic, arbitrage traders will take care of that, they buy on one platform and sell it on the other. Its a game we cannot play because you need to be in the pit and have access to the electronic traded contract as well.
Since they rarely if ever stay diverged, just watch the contract you are trading withou getting too complicated.
Its like what I did in my earlier days, I would watch the SP (pit traded) and trade the ES. Did not work to well I would say. (this was when the ES was a fairly new product)
Last edited by wsam29; 01-29-2007 at 03:34 AM.
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