Verbally quoting the Inside Market...for Scalpers mostly | Traders Hideout - futures trading strategies, market news, trading charts and platforms

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Verbally quoting the Inside Market...for Scalpers mostly

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Trading Experience: Advanced
Platform: Ninjatrader
Favorite Futures: ES, GE, M6E
Posts: 77 since Jan 2018
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eric73 View Post
Hi John,
Are you looking for the part where we drop off the higher digits and use the the lower digits close to the decimal point, and then tell where the pressure seems to be on the Bid and Offer? So, if you were looking at a market where it moving fairly slowly on low volume (not changing quickly)...would you want to hear me say "Ten-Fifty, 600 Bid, 200 Offer"?

Or, do you want to hear me say something else?


Hey Eric thanks for the response.

The way I was taught, the "higher digits" are the "handle" and it wouldn't be necessary to say them.

"Ten-Fifty, 600 Bid, 200 Offer"

Yes that's essentially what I was asking for, a quote on the inside market, or, how anybody else may quote it. Guessing by responses this isn't something that is salient for alot of folks on FIO, I kinda thought that to be the case which is why I specified "mostly for scalpers". I assume if you trade exclusively charts, indicators, or something uber fast moving...or never talk in real life to other traders there's less of a need.

From what I was taught, if I was asked to quote that market my response would be something like:

"Ten quarter BID on six hundred...200 AT ten half.....ten halves trading"

The part that was stressed to us is the differentiation between how you quote the buy and sell side. This is important if your in the pit, or just quickly communicating something about a trade you made or something you see happening. So it would go like this...

Buy side/bids = PRICE on QUANTITY
Sell side/offers = QUANTITY at PRICE

I imagine this looks like a small and maybe even inconsequential distinction to alot of you, and it's probably meaningless for your trading. For me, every conversation I've had about markets for the past 15 years has been with this and other associated vernacular....hearing things put any other way and my mind has to stop and process it. What's funny is among pit traders (and pit trained screen traders)....this becomes the way we talk about everything we buy or sell haha. Real Estate, cars, drinks at a bar.

"did you buy that Lexus?"
"Yeah, I was 54 BID, the salesman was AT 58 plus tax and title and I wasn't coming up, so I said I was heading over to BMW and he decided to come down."

I've actually heard that haha.

It could also be done like the above, without quantities if not necessary or not meaningful. "ten quarter BID AT ten half"...or simply "Ten quarter AT ten half". The important part is you name the PRICE you're willing to PAY....but you name the QUANTITY available for sale AT the price.

Do it a couple times and it makes sense. You want to know the PRICE people will pay....or the QUANTITY available to buy (for sale) at a price.

Alternatively, and a little faster depending on the situation, using the above example you could also quote:

"Ten quarter AT ten half, six hundred BY two hundred"
Bid price AT offered price, quantity BY Quantity.

Now that I start thinking about this....something was different at the CBOT. Maybe somebody who's spent time there knows. Something about the way they quote the sell side. I remember being in the pit one day and hearing someone call out an offer in some odd way, and someone on the other side of the pit respond "HEY THIS AINT THE CBOT".

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