The Trading Floor

Traders either stand in the center of the pit facing outwards or on the steps facing inwards.

The trading floor.

Hello i m julia verlaine from j p. How the trading floor really works is an invaluable resource for current mbas recent graduates and experienced financial market participants alike for the novice about to join the trading floor ranks it provides a base framework for understanding the world they are entering. Trading floor is a place where traders buy and sell fixed income securities shares commodities foreign exchange options etc. The floor where trading activities are conducted.

It involves shouting and the use of hand signals to transfer information primarily about buy and sell orders. The part of the trading floor where this takes place is called a pit. Trading floors are found in the buildings of various exchanges such as the new york stock exchange and the chicago board of trade. Floor trading has become increasingly rare as electronic trading.

Before the electronic era trading relied heavily on these trading floors. The trading floor is a 2018 hong kong financial thriller television miniseries produced by andy lau and directed by wong kwok keung. 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. What is the trading floor.

The pits have a flat center and broad steps ascending concentrically to the edge the steps ensure that traders can see each other. A floor trader is an exchange member who executes transactions from the floor of the exchange exclusively for their own account. The series stars francis ng joseph chang and yu nan with special appearances by patrick tam and maggie cheung while the recurring cast includes liu kai chi carlos chan poon chan leung jacky cai and jiang a joe co produced by fox networks group tencent. The trading floor is a large room with several circular arenas known as pits.

Trading is conducted in the pits. In an open outcry auction bids and offers must be made out in the open market. The general purpose of a trading floor is to give traders a specific place where they can buy and sell stocks and options. Open outcry is a method of communication between professionals on a stock exchange or futures exchange typically on a trading floor.

And although certain aspects of the overall trading infrastructure will continue to be commoditised the real competitive edge will come from the banks ability to fully automate and digitise their business models not from hanging onto voice trading.