Why are traders on the floor of the exchange?

By Chizoba Morah AAA
A:

Before the advent of electronic trading platforms, the floor of the stock exchange was the location for market transactions in stock exchanges. The floor of the stock exchange is the physical location of buying and selling stocks on a stock exchange. On the floor of the stock exchange, traders and brokers, surrounded by computers, buy and sell stocks for their various accounts.



While trading on the floor of the exchange is being slowly eroded by electronic trading platforms, this method of trading is still active today. So, traders are not trading on the floor of exchange because they don't have desks, they are there because standing on the trading floor is still a way of trading on the stock exchange. (To learn more, see The Tale Of Two Exchanges: NYSE And Nasdaq.)



This question was answered by Chizoba Morah.



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