Which of the following is not a characteristic of futures trading?
A) Open outcry involves offers to buy or sell and are communicated verbally and/or with hand signals to all traders in the pit.
B) Open interest indicates all unliquidated contracts for a commodity at any time on a cumulative basis.
C) The specialist is the primary trader in the futures markets.
D) Trading follows an auction market process in which every bid and offer competes without priority as to time and size.

Question

Quizplus · Accepted Answer

The specialist is not the primary trader in futures markets; rather, they are more commonly associated with stock exchanges where they manage the trading of specific stocks. Futures markets typically involve a broader range of participants including individual traders, hedge funds, and institutional investors.

Which of the Following Is Not a Characteristic of Futures