Q611
Method of auction of futures contract in which traders sell their futures contracts at a specified price by crying out in louder voices is classified as
A.
traders gathered auction
B.
close outcry auction
C.
specified auction
D.
open outcry auction
AnswerAnswer: Option D
Solution
Answer: Option D
Solution:
Method of auction of futures contract in which traders sell their futures contracts at a specified price by crying out in louder voices is classified as open outcry auction. Open outcry is a method of verbal and hand signal communication used by traders at stock and futures exchanges. Signals and shouts convey trading information, intentions, and acceptance in the trading pits.