Commodity Exchange Trading Floor

Commodities market and exchange at cnnmoney.

Commodity exchange trading floor.

The floor where trading activities are conducted. 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. 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. It involves shouting and the use of hand signals to transfer information primarily about buy and sell orders.

James kim sales trader at saxo capital markets australia examines trading strategies for the week in a technical analysis of forex and equity charts. The floor trader must abide by trading rules similar to those of the exchange specialists who trade on behalf of others. In an open outcry auction bids and offers must be made out in the open market. He also looks at commodities such as oil gold and copper.

Get the latest commodity trading prices for oil gold silver copper and more on the u s. Kim looks at trends in the us dollar index and looks at pairs such as eurusd audusd and usdjpy. Information flow floor brokers standing in a pit and watching non stop trading in a commodity may have a better feel for the action than a broker trading on an electronic platform. 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. The term should not be confused with floor broker floor traders are occasionally referred to as registered competitive traders individual.