Anatomy of a Trade - The NYBOT

[@seleccionmultiple2905]

This kind of videos gain more value over years.

[@AvektaProds]

It's not a joke, Robert! Most of the people you see in this video became unemployed when the market went digital several years ago. What you see here (if you watch the video) is how it was done for some 300 years. It's amazing how well it worked, but you can't beat computers. Now it's just a matter of how much money you spend on your algorithms - which means greater spread between rich and poor (or in this case perhaps, rich and really rich). This is a historical documentary and I am very glad you got to see it and comment. Thanks!

[@CristianCarvajalC]

Trading algos should be prohibited

[@AvektaProds]

@@CristianCarvajalC Please explain. Would this re-hire all the pit traders? That would be nice. BTW are their jackets now, like, collector items on eBay? I'd love to get that checkerboard one.

[@CristianCarvajalC]

Yes, because we need the human factor in trading... maybe go livestream the pits to get “the feel” from the floor while I’m on my desk behind my computer. Algorithms only produce one thing: cheating, rigged computers. The only thing is honest, is the human actions, the mistakes, the chaos of millions of traders

[@andrewyork3869]

​ pits where anything but honest, but yeah CBOE and NYSE agree with you to some extent.

[@kingtigercrownestate9102]

This beautiful art form needs to be brought back!

[@rubster1975]

In such a short time we went from out cry to online trading. It's a completely different game. The mayority of pit traders never transitioned to online. The skill set is extremely different. It makes me, as a proffesional futures trader, wonder what the future will be like.

[@AvektaProds]

Have you read, "The Creature from Jeckyll Island?" We're all on the same slide to the future and it's frightfully downhill.

[@AvektaProds]

Glad we could help. Thanks for commenting!

[@AvektaProds]

We added the music to create a sense of drama and help create a sensory continuity to what, for some, would have been a long, tedious lecture. There were no copyright issues as we purchased the music, got performance rights of everyone in the video, and were contracted directly by NYBOT (and later, ICE) to make the video according to their desires, which included the music. We're sorry you didn't like it. Can't please everyone, but we are pleased you shared your opinion.

[@TheAremo1st]

A great and informative video. Having an understanding of the basics puts you in a position of being a successful trader. It's the difference between knowing how to drive a car and how a car actually works.

[@AvektaProds]

So glad you enjoyed our trip down memory lane! What profession did you take up after the robots took your job?

[@nukeacitrus883]

I'm getting stressed just watchin those guys and gals shouting and screaming and waving their arms around. Amazing how much control and order was hidden underneath all that chaos :D

[@AnnLippert1]

i worked at the Chicago Board of Trade in 1993-95 . All manual. No computers back then all tickets. and phones. the good old days. i did not know it's all computers now.

[@AvektaProds]

We wonder where all those open criers are now. Please send us a comment if you worked in an Outrageous Sport Jacket.

[@ronpaul2008rocks]

The video leaves out the part about Bernanke mentioning he might print more money sending the prices sharply up; then Bernanke mentioning he might not print more money sending the price sharply down.

[@AvektaProds]

Glad you liked this and subscribed. We are busy converting over 30 years of our productions into helpful KZbin videos. Topic areas with the most comments and views get priority for the next upload. Currently Financial and Healthcare are the top ranking, but we invite you to explore our channel for other interesting videos. We listen to suggestions too! Each video took many hours and thousands of dollars to produce (with the exception of our cheap, cell videos of celebrities we meet.)

[@jahivan]

This video is awesome!, great explanation, really liked it. Only one comment about the music: its too loud and wont let you hear the explanation very well on some parts of the video.

[@sonoradrift]

Wow, things have changed alot since 2006!

[@riddlouche]

Amazing explanation

[@AvektaProds]

Yes! And you can trade tea!

[@infiltr80r]

So many employees involved in the backoffice, incredibly inefficient. Their edge came from seeing what others were doing, it was so much easier compared to today when you have spoofers, dark pools and various order types behaving differently. Of course they miss those times but you cannot say it worked better.

[@AvektaProds]

Thanks so much for your very astute comparisons and you are right! But many people don't know what "spoofers, dark pools, and various order types behaving differently" mean, whereas this documentary made it simple enough for high school kids to understand. We need another video - for adults too - to explain the new world of investing, now that so many are getting involved. I wonder who will pay for that one? NYBOT is gone.

[@infiltr80r]

@@AvektaProds I'm not criticizing the video, the video is fine. Just strawmanning with the usual floor traders who reminisce of the "good ol' times".

[@andrewyork3869]

​@@infiltr80r really we need both, one to keep the other in check.

[@BH-tp3pm]

Totally agree. All the algos these days that spoof other algos in milliseconds, so fast that we can’t even see the orders come up on screen. The game has changed and it’s ridiculous!! Open outcry was the fairest of all the trading methods. Needs to be reintroduced!

[@dmurvihill]

So does the clearing corporation then assume the risk of one party failing to enter their end of a trade? And if so, how do they then close out their position when they end up with a bunch of extra sugar? Do they have their own floor broker? And who clears that broker’s trades?

[@AvektaProds]

We have no idea. Our understanding was that all trades are balanced by the end of the day. We don't know how this was done, but suspect it was with cash!

[@smoothopsop8471]

Madness.

[@GrumpyOldTroll]

If Biegler's broker is buying and the traders in the pit are selling, why does he go for the highest offer in the pit rather than the lowest? Shouldn't he be getting the lowest price for his client?

[@AvektaProds]

NYBOT斉藤へようこそ！ あなたの思い出がすべて良いことを願っています！ ジョージ・アヴゲラキス、ディレクター。

[@varunp601]

Superb, Thank you

[@AvektaProds]

You are most welcome. It was exciting to film this and we're sorry technology made it obsolete. Considering the long history of open call bidding, this may be one of the last remaining documentations describing how it worked.

[@madsam52]

Its crazy to think that this process is completely obsolete today.

[@AvektaProds]

Yes! I was paid to make this as a contemporary educational video. Now it's a picture of history. Imagine if we had videos of what trading was like in Antwerp in 1460!

[@leem7222]

In the days were ftd's, market manipulation, payment for order flow, dark pools etc etc was just a bad dream. #amc

[@AvektaProds]

And now with crypto, I suppose your dreams are sweet?

[@AvektaProds]

Imagine what you could make if you put on shoes!

[@parkla4098]

This all now happens under a second.

[@HypnosisASMR]

you added the music track to avoid copyright detection, didn't you?

[@a.a.1245]

We know now where the writers of the show Billions took the idea for that episode.

[@AvektaProds]

Which episode! We'd like to see it and reference it here.

[@a.a.1245]

​@@AvektaProdsseason 3, episode 2, if Im not mistaken.

[@emmanuelquerol]

my god, they've been standing for a long time, give them all chairs, stationary chairs.. and also, put some walking waiters with a tray of glasses of water for everyone there

[@GabeClendenning]

this system is so slow it hurts. so much potential to lose info and get a mispriced fill. ill still to my ECN's and smart order routing system to quickly jump in and out of positions

[@keithchapman3016]

In today's world this old and dated. Many of the older so called traders were order filling not traders. Today trading is mix of both programs and skilled orderflow traders. I believe either you can read the market or do you not, but follow the crowd.

[@AvektaProds]

You are right. Reading the market means reading the crowd, not being the crowd. Are you a programmer or orderflow trader? Share some of your experiences here! People want to learn.

[@peacelove983]

Trading floor doesn't exist anymore It's all about high frequency

[@IRAKAZ]

It is all about high frequency ?...even after 3 years, you are so wrong.

[@OversikerSTUDIO]

@@IRAKAZ yeah its about high frequency trading in nanoseconds

[@IRAKAZ]

@@OversikerSTUDIO and still now you are wrong :)

[@seanp2357]

lmao the guy on the left at 1:57

[@AvektaProds]

I am so thrilled that you "found yourself!" I will admit, the guy next to you at that second was my favorite that day - he was very active and demonstrated many of the aspects of pit trading that my clients wanted to illustrate. You, sir! What were you doing, thinking, strategizing then. Your body language seems very contained as if you were holding onto something -what was that? Perhaps you can give our audience a bit of strategy from the days when strategies were implemented and executed by humans!

[@AvektaProds]

Perhaps you can show this video to your children - maybe grandchildren some day!

[@seanp2357]

@@AvektaProds Ahhh no it wasn't me I was just pointing out how funny his expression was, that would be super cool though :)

[@rogerarteaga2665]

Am I the only one that heard the f bomb drop at 9:14 mark?

[@AvektaProds]

Aw, really?! We missed that, but frankly, if the client didn't complain, who were we to edit it out?!

[@scotty3463]

Thank God we don't have to trade like this anymore. I'm getting rich in my underpants.

[@myworldtech86]

What a hectic job, they have to shout everyday.

[@jpmvidal]

Pit traders who transitioned to electronic trading were eaten alive by HFT's algos.

[@AvektaProds]

I have often felt the tragedy of that. The client who commissioned this documentary, who worked for NYBOT for many years, found himself out of a job after ICE bought NYBOT and then transitioned to ET. But the same thing, more or less, happened to video itself. How many great documentaries are made by corporations these days? Not enough to keep me dedicated to the craft, that is for sure!

[@Scrap5000]

@@AvektaProds and then those ice fuckers raised the fees to insane levels. Impossible for a little guy to subscribe.

[@varunp601]

NYBOT. : Newyork Board of Trade Not any robot instead of floor callers😜

[@ImpliedFP]

Whaaaaatttttt?

[@AvektaProds]

So the Panic of 1792, the stockmarket crash of 1928 and the Great Depressiond, the run on the Bank of the US in 1931, the 1970s Oil Crisis, Boesky and Milliken's junk bond crisis in the '80s, 1987's Black Monday, the US Savings and Loan crisis of 1990, the fall of the Russian economy in 1998, the dot-com bubble of 2000, the collapse of Bear Stearn in 2008, and Justin Bieber's Madison Square Garden concert are of no interest to you? Oh, sorry. I forgot. Beiber''s concert's in Novermber. CUthere

[@HypnosisASMR]

great video, the music is totally unnecessary and distracting, making this otherwise good video rather unwatchable.

[@johnpersechini4951]

Wow it’s all white men except for the actor. Not many women either. The market floor is so archaic and dated these days.

[@meredrums1]

Kind of like your comment.

[@thinkpositive3667]

Glad to see we finally evolved. The traditional method wastes a lot of manpower and resources. Losing their jobs because of computers? Boohoo. Adapt or die, especially now that AI is coming. More jobs will be automated.

[@AvektaProds]

Progress in a digital age extracts the most value from human effort, and the digital age may be the last age in the process of obsolescing humans altogether. Opps! Maybe that was too heavy!

[@jonascastejon5888]

@@AvektaProds Agree, OP was needlessly callous and douchy boohooing former pit traders and brokers. Like you said, maybe one day he'll be some AI-robot's pet slave who'll be like, "Oh you lost your autonomy because of me? Well boohoo! Adapt or die now." Great video btw.

[@AvektaProds]

@@jonascastejon5888 Thanks for your support, Jonas. Gotta run. The AI Robot is calling me to dinner - that is - for me to feed it!

[@WhiteRabbit1980]

great acting lol i couldnt give a number 2s of what has happened in the past its old news