Trading Floor Explained

Everybody looks at the tv.

Trading floor explained. Before the electronic era trading relied heavily on these trading floors. It s often called a pit because when the traders trade they step down onto a certain area and buy sell securities. How winthorpe and valentine pulled it off. Peter tuchman explains and demonstrates how trading works on the nyse new york stock exchange.

It looks like a circular area. I was watching trading places a while back for about the seventh or eighth time and it occurred to me that i still didn t know exactly how winthorpe dan aykroyd and valentine eddie murphy did what they did to make a gazillion bucks and simultaneously break duke and duke. On top of that a number of major rivals had called out the nyse for keeping its trading floor open according to a wall street journal report. The general purpose of a trading floor is to give traders a specific place where they can buy and sell stocks and options.

On the trading floor these traders buy or sell these securities on behalf of their clients or the organization that they work for. Trading floors are found in the buildings of various exchanges such as the new york stock exchange and the chicago board of trade. On the tv the secretary of agriculture walks up to a podium and reads the orange crop report. He also has some valuable suggestions for would be traders.

I find it kind of amazing that the nyse trading. A trading room gathers traders operating on financial markets the trading room is also often called the front office the terms dealing room and trading floor are also used the latter being inspired from that of an open outcry stock exchange as open outcry is gradually replaced by electronic trading the trading room becomes the only remaining place that is emblematic of the financial market. A minute later everything on the trading floor goes quiet.