Stock Traders On The Floor

There are still traders who work on the floor of the new york stock exchange nyse where some large companies still trade in the pit as well as commodity and options exchanges like the chicago.

Stock traders on the floor. In fact floor traders serve as a small fraction of the people found on the floor of the new york stock exchange each day. A floor trader is a member of a stock or commodities exchange who trades on the floor of that exchange for his or her own account. Floor traders are occasionally referred to as registered competitive traders individual liquidity providers or locals. 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 exchanges including bombay stock exchange bse and new york stock exchange nyse.

Trading floor is a place where traders buy and sell fixed income securities shares commodities foreign exchange options etc. Traders buy and sell securities on behalf of clients or on behalf of the financial firm which employs them. Floor traders used to use the open outcry method in the pit of a. The term should not be confused with floor broker.

A floor trader is an exchange member who executes transactions from the floor of the exchange exclusively for their own account. Before they can trade generally they must pass a screening.