Stick Trading Floor

Trading on the floor of the new york stock exchange nyse is the image most people have thanks to television and movie depictions of how the market works.

Stick trading floor. It can be defined as that segment of the market where the trading activities by the dealers in the financial instruments like equities debt derivatives bonds futures take place they take place in various. The stock market trading floor has an environment similar to an auction with floor brokers and floor traders gathering around specialists where they negotiate prices until they arrive at an amount. Trading floors are found in the buildings of various exchanges such as the new york stock exchange and the chicago board of trade. Trading floor is a place where traders buy and sell fixed income securities shares commodities foreign exchange options etc.

Learn how trading on the floor of the stock exchange has evolved over time with computers now managing the majority of the buying selling and negotiating. The part of the trading floor where this takes place is called a pit. In an open outcry auction bids and offers must be made out in the open market. Open outcry is a method of communication between professionals on a stock exchange or futures exchange typically on a trading floor.