• A specific area of the trading floor that is designed for the trading of commodities, individual futures, or option contracts.
• Is the area on the floor of an exchange where trading occurs. It is also known as the ring.
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| ||Ex pit: Refers to a transaction outside the Pit or ring. This is permissible for bona fide hedging purposes or to allow for a smooth transfer of accounts between brokerage firms. This type of transaction is under less scrutiny than ordinary transactions because there is no public offering of the positions.|
| ||Futures market: A continuous auction market in which participants buy and sell commodities contracts for delivery on a specified future date. Trading is traditionally carried on through open outcry and hand signals in a trading Pit or ring.A market in which contracts for future delivery of a commodity or a security are bought and sold on an organized futures exchange such as CBOT, CME.A market in which contracts for future delivery of a commodity or a security are bought or sold.|
| ||Ring: Is the area on the floor of an exchange where trading occurs. It is also known as the Pit.|
| ||Rings: Trading arenas located on the floor of an exchange in which traders execute orders. Sometimes called a Pit.|
| ||Related Terms|
| ||Ex pit|