stock market traders

[seb brown]

What exactly are all the people in different coloured jackets on the stock markets doing? I saw some on the news today for the oil market. They all just seem to be shouting and waving their arms about. But who are they shouting at? What are they shouting, and how does who ever they're shouting at hear them over all the other noise? Are the different coloured jackets for different companies' representatives? I know they are buying and selling stocks and stuff, but why shout and what suddenly makes them want to go mad all at once? Please explain.

[Rigadon]

The different jackets represent which company the Locals (traders) deal for. The Oil Market, International Petroleum Exchange (IPE), is the largest floor based trading system in the UK. The shouting is to communicate prices, buying or selling, the type and month of stock you wish to buy to locals from other companies. As you mentioned, its incredibly noisy due to the shouting and prices e.t.c could be misheard. Therefore a second method to 'confirm' prices, months are needed. This is done using your fingers. All locals/traders have to learn this and take an exam before they are allowed into the 'pit'. Its very tricky to learn and decipher due to the speed thats used hence all the arm waving. I'm sure if you google this, you'll be able to find out the different 'finger denominations'. There's often long periods of the day when very little is going on and raised voices aren't used. The reason they all go mad at once can be due to many things i.e intrest rates announcments, non-farm payroll figures released, un/employment figures in the US, terrorist attacks, demand for particular stock e.t.c I'm guessing if it was a live feed on the news article you saw it would have been around about 2pm, which is when the American Energy Market opens. Generally though, the majority are ' wide boys' who like the sound of their own voices and feel that by shouting it somehow places them above everybody else.

[MrIxolite]

Can' this be done quicker by computer these days?