Floor Trader - FT

AAA

DEFINITION of 'Floor Trader - FT'

An exchange member who executes transactions from the floor of the exchange exclusively for his or her own account. Floor traders used to use the "open outcry" method in the pit of a commodity exchange, but now most of them use electronic trading systems. They fulfill an important role in commodity and stock market by risking their own capital to trade futures, options or stocks, thereby providing liquidity and narrowing bid-ask spreads.

INVESTOPEDIA EXPLAINS 'Floor Trader - FT'

A floor trader is subject to a screening process before he or she can trade on the exchange. The National Futures Association requires floor trader applicants to file the following: Form 8-R completed online, fingerprint cards, proof from a contract market that the individual has being granted trading privileges, and a non-refundable application fee of $85.

RELATED TERMS
  1. Floor Broker (FB)

    An independent member of an exchange who is authorized to execute ...
  2. Manual Execution

    A method of trading with the help of a dealer or broker, versus ...
  3. Off-Floor Order

    An investor's directive to buy or sell securities when that directive ...
  4. Trading Floor

    The floor where trading activities are conducted. Trading floors ...
  5. Runner

    A broker employee who delivers a market order to the broker's ...
  6. Flipper

    1. A short-term investor or day trader who buys pre-IPO shares, ...
Related Articles
  1. Stock Basics Tutorial
    Investing Basics

    Stock Basics Tutorial

  2. How To Use Volume To Improve Your Trading
    Options & Futures

    How To Use Volume To Improve Your Trading

  3. How To Trade The Head And Shoulders ...
    Trading Strategies

    How To Trade The Head And Shoulders ...

  4. Brokers and Online Trading
    Options & Futures

    Brokers and Online Trading

comments powered by Disqus
Hot Definitions
  1. Elasticity

    A measure of a variable's sensitivity to a change in another variable. In economics, elasticity refers the degree to which ...
  2. Tangible Common Equity - TCE

    A measure of a company's capital, which is used to evaluate a financial institution's ability to deal with potential losses. ...
  3. Yield To Maturity (YTM)

    The rate of return anticipated on a bond if held until the maturity date. YTM is considered a long-term bond yield expressed ...
  4. Net Present Value Of Growth Opportunities - NPVGO

    A calculation of the net present value of all future cash flows involved with an additional acquisition, or potential acquisition. ...
  5. Gresham's Law

    A monetary principle stating that "bad money drives out good." In currency valuation, Gresham's Law states that if a new ...
  6. Limit-On-Open Order - LOO

    A type of limit order to buy or sell shares at the market open if the market price meets the limit condition. This type of ...
Trading Center