Explain What Traders Do On Stock Exchange Floor

Trading procedure on a stock exchange.

Explain what traders do on stock exchange floor. When the market is open you see hundreds of people rushing about shouting and gesturing to one another talking on phones watching monitors and entering data into terminals. Selection of a broker. A minute later everything on the trading floor goes quiet. It can be defined as that segment of the market where the trading activities by the dealers in the financial instruments like equities debt derivatives bonds futures take place they take place in various.

I ve always wondered why there are still people on the floor of the new york stock exchange. Trading on the floor of the new york stock exchange nyse is the image most people have thanks to television and movie depictions of how the market works. It provides a marketplace for buying and selling millions of corporate stocks and other securities per day. It was home to traders and brokers who did the actual buying selling and negotiating on the physical exchange.

Trading floor is a place where traders buy and sell fixed income securities shares commodities foreign exchange options etc. Before they can trade generally they must pass a screening. The new york stock exchange is the world s largest stock exchange. It is also a publicly traded company with over 2 000 employees.

In fact floor traders serve as a small fraction of the people found on the floor of the new york stock exchange each day. The trading procedure involves the following steps. The buying and selling of securities can only be done through sebi registered brokers who are members of the stock exchange. The traders mob winthorpe and valentine agreeing to buy lots and lots of oj from them at 1 42 a pound.

Listener john wang who dabbles in a little online trading wrote in to ask this. The storied new york stock exchange in lower manhattan is a symbol of american capitalism the floor brokers specialists and designated market makers dmms on the trading floor are the face of. The broker can be an individual partnership firms or corporate bodies. The floor of the stock exchange was once the main location for market transactions.