Scroll Top

search-icon
    drop-arrow

    Pit

    Introduction

    The pit is a particular part of the trading floor which is planned for the selling and buying of a security of a particular type via the system of open outcry. In the put, brokers are going to match the buy or sell orders being placed by the customers through handle signals and shouting.

    Orders would be displayed through the system of open outcry to all the traders being present at the pit. This will provide them with a chance for all those present in the designated area to compete and quote their prices. Dealers and brokers will trade their respective client orders. Those orders that are not going to be executed in the pit are eventually executed by means of electronic trading.

    Understanding Pit

    Pits are also called as the trading pits. They are octagonally shaped with various tiers in order to provide the best possible visibility. Brokers show their respective affiliation badges or colours of their jackets. Clerks are designated to accept orders by computer or phones from customers.

    Runners are tasked with transmitting orders between the brokers and clerks. They are then allowed to trade their respective shares and represent themselves. They are also allowed to be represented by firms who represent their clients, businesses, or proprietary accounts. Specialists may operate their books on their own on the pit floor by making the markets and maintaining a ledger of orders in anticipation of execution.

    Hand Signalling

    The trading pit, which is a chaotic environment apart from being fast-paced and noisy at the same time, hand signals would help in quicker trading and allowing to be standing out among the crowd. For instance, when brokers go onto raising their hands above, that broker is pointing that he would like to place an order for buy.

    Index

    Clear offers taxation & financial solutions to individuals, businesses, organizations & chartered accountants in India. Clear serves 1.5+ Million happy customers, 20000+ CAs & tax experts & 10000+ businesses across India.

    Efiling Income Tax Returns(ITR) is made easy with Clear platform. Just upload your form 16, claim your deductions and get your acknowledgment number online. You can efile income tax return on your income from salary, house property, capital gains, business & profession and income from other sources. Further you can also file TDS returns, generate Form-16, use our Tax Calculator software, claim HRA, check refund status and generate rent receipts for Income Tax Filing.

    CAs, experts and businesses can get GST ready with Clear GST software & certification course. Our GST Software helps CAs, tax experts & business to manage returns & invoices in an easy manner. Our Goods & Services Tax course includes tutorial videos, guides and expert assistance to help you in mastering Goods and Services Tax. Clear can also help you in getting your business registered for Goods & Services Tax Law.

    Save taxes with Clear by investing in tax saving mutual funds (ELSS) online. Our experts suggest the best funds and you can get high returns by investing directly or through SIP. Download Black by ClearTax App to file returns from your mobile phone.

    Cleartax is a product by Defmacro Software Pvt. Ltd.

    Company PolicyTerms of use

    ISO

    ISO 27001

    Data Center

    SSL

    SSL Certified Site

    128-bit encryption