The short documentary "Pit Trading 101" (2013) directed by Jonathan Hoenig takes you back in time when pit trading flourished. Back in 1996, a documentary crew was given access to observe the teaching of a class of aspiring traders, a class that included director Hoenig himself, at the Chicago Mercantile Exchange when they had attended the University of Trading.
The footage was never used until 17 years later, and by then, computerized trading dominated the market, with only 250 floor traders working at Chicago Mercantile Exchange in 2013, compared to 10,000 in 1996.
The average person, observing the trading floor from one of the viewing stations, would see a chaotic mass of sweaty bodies, standing shoulder-to-shoulder, shouting and making incomprehensible hand gestures. But in reality, pit trading was an orderly process. The hand signals were used to communicate orders; once mastered, the traders could communicate faster with gestures than they could with their voices.
The trading floor attracted people from all walks of life. You didn't need an Ivy League degree; in fact, you didn’t need a diploma at all. A mix of intelligence, physicality, independence and tenacity enabled a person to thrive as a pit trader. You needed to be able to take a risk and think for yourself, to differentiate yourself and stand out in the crowd. These are lessons that transcend the pit.
Watch trailer: