Markets Home

Active trader

Hear from active traders about their experience adding CME Group futures and options on futures to their portfolio.

Find a broker

Search our directory for a broker that fits your needs.

CREATE A CMEGROUP.COM ACCOUNT:

MORE FEATURES, MORE INSIGHTS

Get quick access to tools and premium content, or customize a portfolio and set alerts to follow the market.
Market Data Home

Real-time market data

Stream live futures and options market data directly from CME Group.

E-quotes application

Access real-time data, charts, analytics and news from anywhere at anytime.

CME DATAMINE:

THE SOURCE FOR HISTORICAL DATA

Explore historical market data straight from the source to help refine your trading strategies.
Services Home

Uncleared margin rules

Understand how CME Group can help you navigate new initial margin regulatory and reporting requirements.

Calculate margin 

Evaluate your cleared margin requirements using our interactive margin calculator.
Education Home

Now live: ESG solutions

Manage the risk associated with renewable energies, environmental change and sustainable investments.

Create a CMEGroup.com Account: More features, more insights

Get quick access to premium educational content, including expert-led webinars, a real-time trading simulator, and more.
      Course Overview
      • Definition of a Futures Contract
      • Learn About Contract Specifications
      • Understanding Contract Trading Codes
      • Get to Know Futures Expiration and Settlement
      • Tick Movements: Understanding How They Work
      • What are Price Limits and Price Banding?
      • About Contract Notional Value
      • Mark-to-Market
      • Margin: Know What's Needed
      • Understanding Futures Expiration & Contract Roll
      • Price Discovery
      • Calculating Futures Contract Profit or Loss
      • Understanding the Role of Speculators
      • Understanding the Role of Hedgers
      • Trading Venues (Pit vs. Online)
      • Midwest Grain Trade: History of Futures Exchanges
      • Futures Contracts Compared to Forwards
      • What is Volume?
      • Open Interest
      Introduction to Futures
      You completed this course.Get Completion Certificate

      Trading Venues (Pit vs. Online)

        • Also available in

        • 한국어
        • עברית

      Video not supported!

      Understanding Trading Venues

      The futures market is a dynamic marketplace that currently conducts business via the trading floor or electronic trading. While trading has shifted to mostly electronic transactions, the trading pit still exists and maintains relevance in today’s marketplace. 

      Trading Floor

      Historically, all futures business was transacted on the trading floor. The trading floor was organized into segmented areas, called pits, where traders and floor brokers met face-to-face to buy and sell futures contracts. 

      Every one of those participants was a member, or associated with a member, of a specific exchange where they paid for the right to transact business on the floor. People who wanted to participate in the futures market, but were not a member of the respective commodity exchange, had to call a broker who would then place and order on their behalf. 

      The floor was a visually dynamic marketplace and the image of traders in colorful jackets shouting orders to each other accompanied by specific hand signals remains the image of futures trading.  However, during the 1990’s, new technology allowed futures trading to transition to an electronic platform and online brokerages.

      Electronic Trading

      Access to trading platforms, lower commissions rates and sophisticated high-speed trade routing followed suit. The reduced costs of trading meant that more participants were drawn to the futures market, which in turn had a positive effect on the liquidity of each contract. Today any trader can transact with any other market participant. 

      Trading Hours

      Hours of operation for a pit trader versus a retail online trader are different. For example, the market hours for ES, which is traded online, is Sunday through Friday 5 p.m. to 4 p.m. Central Time (CT) while the SP pit session is Monday through Friday 8:30 a.m. to 3:15 p.m. CT.

      The transaction of trades may have changed over the years but the core purpose of the futures market has remained the same. Whether on the trading floor or through the modern electronic markets, futures remain an excellent contract to trade and manage risk.


      Test your knowledge

      Related Courses
      /content/cmegroup/en/education/courses/introduction-to-futures/trading-venues-pit-vs-online
      • {{ course.name }}
      Previous Lesson
      Next Lesson
      Course Overview
      Get Completion Certificate
      Previous Lesson Next Lesson
      • YouTube
      • Twitter
      • Facebook
      • LinkedIn
      • Instagram
      • Rss

      CME Group is the world's leading and most diverse derivatives marketplace. The company is comprised of four Designated Contract Markets (DCMs). 
      Further information on each exchange's rules and product listings can be found by clicking on the links to CME, CBOT, NYMEX and COMEX.

      © 2021 CME Group Inc. All rights reserved.

      Disclaimer  |  Privacy Policy  |  Cookie Policy  |  Terms of Use  |  Data Terms of Use  |  Modern Slavery Act Transparency Statement  |  Report a Security Concern