Locals are brokers who:
A) Buy and sell for their own account.
B) Are professional risk takers.
C) Add liquidity to the futures market.
D) Play the same effective role as a market maker.
E) All of the above.

Question

Quizplus · Accepted Answer

Locals are traders on the exchange floor who trade for their own accounts, taking on risk to profit from short-term price fluctuations. They add liquidity by being ready to buy or sell, thus facilitating smoother transactions for others. Their role is similar to that of market makers in other financial markets, as they help ensure there is always a buyer or seller available, contributing to market efficiency.

Locals Are Brokers Who