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. Is the Dow Jones a public company?

    Find out how the Dow Jones Industrial Average tracks the health of the U.S. economy. This fluctuating number indicates the ...
  2. Is the Dow Jones a stock exchange?

    Learn about the Dow Jones Industrial Average and its impact. This historically significant index provides a daily snapshot ...
  3. What do traders' hand signals mean on the trading floor?

    Stock market traders use a series of hand gestures to communicate with runners in the pit. There are nine common hand gestures ...
  4. What's the difference between a market order and a limit order?

    Buy and sell trades with market orders at the present stock price and execute limit orders if the stock price falls within ...
RELATED TERMS
  1. Acquisition

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

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

    Definition of international finance
  4. Bidder

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

    An announcement by an investor who holds a security that he or ...
  6. Cash-And-Carry Trade

    A trading strategy in which an investor buys a long position ...
comments powered by Disqus
Related Articles
  1. How To Invest In The Nikkei 225
    Mutual Funds & ETFs

    How To Invest In The Nikkei 225

  2. A Guide To Japan’s Nikkei 225 Index
    Investing Basics

    A Guide To Japan’s Nikkei 225 Index

  3. Investor, Know Thyself: Choose A Stock ...
    Investing Basics

    Investor, Know Thyself: Choose A Stock ...

  4. Why You Should Stick With Tech Stocks
    Stock Analysis

    Why You Should Stick With Tech Stocks

  5. Why Wall Street Is A Key Player In The ...
    Investing Basics

    Why Wall Street Is A Key Player In The ...

Trading Center