Blackboard Trading

DEFINITION of 'Blackboard Trading'

The buying and selling of commodities and futures contracts off of a blackboard found on the wall of a commodity exchange. Blackboard trading specialists hand wrote bids and offers on large chalkboards and when a matching price came up, the trade was executed.


Also called "posting," blackboard trading was too slow of a process to keep up with the volume of trades and began to be replaced by automated quote boards in 1969.

BREAKING DOWN 'Blackboard Trading'

The American Stock Exchange tested the first automated quote boards, which could electronically display the current quotes and the most recent prices of more than 100 securities.

Today, software programs make it possible to execute trades automatically without a dealer, specialist or market maker's assistance, through electronic communications networks and electronic stock exchanges. These systems are programmed to match buy and sell orders for the same number of shares at the same price.

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RELATED FAQS
  1. A _______ is a person on the trading floor of certain exchanges who holds an inventory ...

    The correct answer is d. A good example of an exchange using the specialist system is the NYSE. Each stock listed on the ... Read Answer >>
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    Commodities are extremely important as they are essential factors in the production of other goods. A wide of array of commodities ... Read Answer >>
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