Commodity Exchange Trading Floor

The floor trader must abide by trading rules similar to those of the exchange specialists who trade on behalf of others.

Commodity exchange trading floor.

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. Trading floors are found in the buildings of various exchanges such as the new york stock exchange and the chicago board of trade. He also looks at commodities such as oil gold and copper. The term should not be confused with floor broker floor traders are occasionally referred to as registered competitive traders individual.

While trading on the floor of the exchange is being quickly eroded by electronic trading platforms the open outcry method of trading doesn t appear to be completely going away any time soon. Kim looks at trends in the us dollar index and looks at pairs such as eurusd audusd and usdjpy. 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.

Commodities market and exchange at cnnmoney. Information flow floor brokers standing in a pit and watching non stop trading in a commodity may have a better feel for the action than a broker trading on an electronic platform. It involves shouting and the use of hand signals to transfer information primarily about buy and sell orders. Open outcry is a method of communication between professionals on a stock exchange or futures exchange typically on a trading floor.

James kim sales trader at saxo capital markets australia examines trading strategies for the week in a technical analysis of forex and equity charts. The floor where trading activities are conducted.