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.



RELATED FAQS

  1. How are Morning Star patterns interpreted by analysts and traders?

    Understand the elements of the morning star candlestick pattern and how this reversal signal is interpreted by traders and ...
  2. What are the best indicators to identify overbought and oversold stocks?

    Learn about the interpretation of the relative strength index and stochastics, two of the most popular indicators of overbought ...
  3. How effective is creating trade entries after spotting a Golden Cross pattern?

    Explore the components of the golden cross pattern for elements of effective trading strategy based on this pattern, including ...
  4. What is an optimal trading strategy to take after a trader spots a bullish abandoned ...

    Explore the optimal way to create a trading strategy based on the bullish abandoned baby candlestick pattern, including entry ...
RELATED TERMS
  1. Market Value

    The price an asset would fetch in the marketplace. Market value ...
  2. Acquisition

    A corporate action in which a company buys most, if not all, ...
  3. International Finance Corporation

    The International Finance Corporation is an organization dedicated ...
  4. International Finance

    Definition of international finance
  5. Bidder

    The party offering to buy an asset from a seller at a specific ...
  6. Bid Wanted

    An announcement by an investor who holds a security that he or ...

You May Also Like

Related Articles
  1. Stock Analysis

    Buyinb Facebook Stock, A Beginner's ...

  2. Economics

    Profiting From China's Breakout: The ...

  3. Schwab may not be the first company to offer a robo-advisor, but it's sure to make a big splash. Here's what it'll look like.
    Professionals

    Robo-Adviser Wave Gets Big Push From ...

  4. Investing News

    Alibaba's Top Competitors

  5. Investing Basics

    Analysis of Companies with high goodwill

Trading Center