Commodity Exchange Trading Floor

The part of the trading floor where this takes place is called a pit.

Commodity exchange trading floor.

In an open outcry auction bids and offers must be made out in the open market. Trading floors are found in the buildings of various exchanges such as the new york stock exchange and the chicago board of trade. Open outcry is a method of communication between professionals on a stock exchange or futures exchange typically on a trading floor. A floor trader is a member of a stock or commodities exchange who trades on the floor of that exchange for his or her own account.

Get the latest commodity trading prices for oil gold silver copper and more on the u s. The floor broker can relay these insights to the customer via the upstairs commodities broker. Floor traders used to use the open outcry method in the pit of a commodity or stock exchange but now most of them use electronic trading systems and do not appear in the pit. While trading on the floor of the exchange is being quickly eroded by electronic trading platforms the open outcry method of trading doesn t appear to be completely going away any time soon.

The floor where trading activities are conducted. He also looks at commodities such as oil gold and copper. The term should not be confused with floor broker floor traders are occasionally referred to as registered competitive traders individual. The floor trader must abide by trading rules similar to those of the exchange specialists who trade on behalf of others.

James kim sales trader at saxo capital markets australia examines trading strategies for the week in a technical analysis of forex and equity charts. Commodities market and exchange at cnnmoney.