Stock Market Trading Floor

Open outcry is a method of communication between professionals on a stock exchange or futures exchange typically on a trading floor.

Stock market trading floor. Trading floors are found in the buildings of various exchanges such as the new york stock exchange and the chicago board of trade. The nyse handles another 12 percent of the market volume electronically. The stock market has closed at times over the years such as during world war ii and in the wake of 9 11 but this is the first time the physical trading floor of the big board has ever shut. 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.

It involves shouting and the use of hand signals to transfer information primarily about buy and sell orders. The new york stock exchange is temporarily closing trading floors and moving to fully electronic trading next week to prevent the spread of coronavirus exchange operator intercontinental exchange. With the trading floor closed traders predict continued volatility. In an open outcry auction bids and offers must be made out in the open market.

The floor of the stock exchange was once the main location for market transactions. Orders executed on the trading floor enter by way of exchange members and flow down to a floor broker who submits the order electronically to the floor trading post for the. Traders work the floor of the. In fact only about 12 percent of all stock transactions occur on the floor of the new york stock exchange.

An investor wants to buy a stock at 30 before the market opens hazarding that is a fair price. The part of the trading floor where this takes place is called a pit. New york stock exchange closes trading floor will operate electronically closing down the market itself would be viewed as incredibly extreme one analyst said. It was home to traders and brokers who did the actual buying selling and negotiating on the physical exchange.