What is the difference between on-floor scalping and off-floor scalping?
Scalping on the exchange floor is very different from intraday scalping at the computer. When you trade off the floor, deals usually have baboutlonger duration – 5, 7, 9 minutes, time, two hours, half day. Personally, I, when I trade in a pit, I can open hundreds of contracts within one or two minutes.
When you trade on the floor – with brokers and locales and among all market activity – you are part of the market. Locals in futures pits are actually like market makers in stocks, setting bids and offers for institutional players.
When I trade in the pit, I have a certain choice, do i want to be long or short. I have my technical research, which shows areas of support and resistance, where i want to buy and sell. For example, I want to buy futures at 1500 and I have a stop in my head 1496, and arrive around the area 1508. But when I'm on the floor and I see, that S&P drops to 1499 1498.50 1498, i will be a buyer along the way. And when futures reverses to 1500 and higher, I will buy and exit my positions until I reach my price. Outside the pit I buy by 1500 with a stop after 1496 and I'm guided by the exit by 1508. I don't scalp like on the floor.
You personally on the floor use spreads down?
Every morning my traders and I have “Morning session”. Using combinations of technical analysis, we mark possible pivot points, that can occur throughout the day, and when passing these points, the market can be bullish, and below these points – Bearish.
Can a new trader, knowledgeable S&P come for minimal training? The pit rules are very different from those on the floor.?
Everywhere, wherever you trade – on the floor or in a pit – you must know your environment.
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