Trading Floor

AAA

DEFINITION of 'Trading Floor'

The floor where trading activities are conducted. Trading floors are found in the buildings of various exchanges, such as the New York Stock Exchange and the Chicago Board of Trade. These floors represent the area where traders complete the buying or selling of an asset.

INVESTOPEDIA EXPLAINS 'Trading Floor'

The trading floor is also referred to as "the pit" of an exchange, due to the hectic nature of the area. However, with the advent of electronic trading platforms, many of the trading floors that once dominated market exchanges have started to disappear as trading has become more electronically based.

Trading floors can also be found in brokerages, investment banks and other companies involved in trading activities. In this case, it refers to the physical office location that houses the trading division, which can complete transactions over the internet or telephone.

RELATED TERMS
  1. Archipelago

    An electronic communications network (ECN) that merged with the ...
  2. Ring Trading

    The method by which certain types of investment business is conducted ...
  3. Non-Member Trader

    A person or entity that does not have trading privileges or an ...
  4. Open Outcry

    A vanishing method of communicating on a stock, commodity or ...
  5. Pit

    A specific area of the trading floor that is designated for the ...
  6. Stock Exchange Daily Official List ...

    A unique identification code, consisting of seven alphanumeric ...
Related Articles
  1. Quit Your Job To Trade Stocks?
    Professionals

    Quit Your Job To Trade Stocks?

  2. The Roles Of Traders And Investors In ...
    Investing Basics

    The Roles Of Traders And Investors In ...

  3. An Introduction To Day Trading
    Active Trading Fundamentals

    An Introduction To Day Trading

  4. Day Trading Strategies For Beginners
    Trading Strategies

    Day Trading Strategies For Beginners

comments powered by Disqus
Hot Definitions
  1. Accounts Payable - AP

    An accounting entry that represents an entity's obligation to pay off a short-term debt to its creditors. The accounts payable ...
  2. Ratio Analysis

    Quantitative analysis of information contained in a company’s financial statements. Ratio analysis is based on line items ...
  3. Days Payable Outstanding - DPO

    A company's average payable period. Calculated as: ending accounts payable / (cost of sales/number of days).
  4. Net Sales

    The amount of sales generated by a company after the deduction of returns, allowances for damaged or missing goods and any ...
  5. Over The Counter

    A security traded in some context other than on a formal exchange such as the NYSE, TSX, AMEX, etc. The phrase "over-the-counter" ...
  6. Earnings Before Interest After Taxes - EBIAT

    A financial measure that is an indicator of a company's operating performance. EBIAT, which is equivalent to after-tax EBIT ...
Trading Center