Trading floor

Trading floor,

Definition of Trading floor:

  1. The trading floor is also referred to as the pit of an exchange. This is due to the fact that, initially, the trading floor was circular in design, and traders had to step into the arena to conduct their desired transactions. Factor in the hectic, frenzied nature that accompanies this type of activity, and one can see that the moniker is quite descriptive.

  2. Enclosed area in a commodities, futures and options, or stock exchange where transactions (trades) are made by shouting buying and selling orders (called open outcry). In modern exchanges trades are now made through telephone or online trading.

  3. An area within an exchange or a bank or securities house where dealers trade in stocks or other securities.

  4. Trading floor refers to an area where trading activities in financial instruments, such as equities, fixed income, futures etc., takes place. Trading floors sit in the buildings of various exchanges, such as the New York Stock Exchange (NYSE) and the Chicago Board of Trade (CBOT).

How to use Trading floor in a sentence?

  1. Trading floor refers to an area where trading activities in financial instruments, such as equities, fixed income, futures etc., takes place.
  2. Open outcry was the primary trading method used on trading floors before the rise of electronic trading.
  3. Trading floors sit in the buildings of various exchanges, such as the New York Stock Exchange (NYSE) and the Chicago Board of Trade (CBOT).
  4. The NYSE and AMEX are both primarily auction based, which means specialists are physically present on the exchanges trading floors.

Meaning of Trading floor & Trading floor Definition