Ring Trading
Categories: Trading
You get married. Then you fall in love with your best friend's spouse. At the same time, your beloved has fallen in love with your best friend. After everything is untangled, you end up married to your best friend's former love, and your former spouse ends up married to your (former) best friend.
One form of ring trading. The other kind has to do with trading on the London Metal Exchange.
Just as in a boxing match, the action in the LME takes place in an area known as the Ring. It's kind of like the Pit in the NYSE. It's the LME's open-outcry trading floor...the place where people yell bids and asks at each other and settle on prices. And, every once in a while, there's a bit of blood spatter.
The Ring also refers to the process that the LME uses to discover prices. The term itself refers to five-minute long sessions. These "rings" are the time intervals for the open-outcry system, with trading in each metal taking place during certain five-minute periods throughout the day.
