Arbitrageurs in the S&P pit would usually take the offer and buy them back via screen (e-mini). If you have been to the pit in Chicago, you can easily tell who the arbs are. They usually wear wireless headsets and their clerks sit on the first ring from the pit with joystick controls. They rely on the bid/ask spread difference between the large S&P contracts and e-mini to earn a living. This is a fairly dangerous game though - and it is called picking up the nickle in front of the bulldozer in the pit.
Thanks for the information. Could someone tell me what is the meaning of "paper sell" and "500 cars" ...
秋雨 发表于 2010-8-27 00:23
Check out the FAQ thread I wrote a while ago. On the bottom of the first page, in a supplementary post, I explained what a car is. The term originated when future market only traded commodities. Each contract refers to a single railroad car and this term has since stuck, even for financial products. http://www.hutong9.net/viewthread.php?tid=86040
Is Arbitrageur what you call "local"?
rnhoo 发表于 2010-8-27 02:12
A local can be an arb. However, an arb doesn't have to be a local. For example, there are lots of program trading blackboxes that run arb routines to bring cash and future market in line.
A local can be an arb. However, an arb doesn't have to be a local. For example, there are lots o ...
csw2002 发表于 2010-8-27 02:56
还有一个问题想请教，你说“Papers refer to institutional orders. In COTS report, they are typically referred to as Commercials.”
那么谁是 large specular 和 small speculator 呢？我常听说large specular的动向最重要，而commercial 主要是hedge,所以不要太在意。
[quote]还有一个问题想请教，你说“Papers refer to institutional orders. In COTS report, they are typical ...
rnhoo 发表于 2010-8-27 03:37 [/quote
Trading by investment banks on their own accounts are classified by CFTC as commercials. On the other hand, trading by investment banks' clients (typically hedge funds) are usually classified as large speculators.
狗仔卡
发表于 2010-8-26 09:00 PM
