Floor trader


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Floor trader

A stock exchange member who generally trades only for his own account or for an account controlled by him, or who has such a trade made for him. Also referred to as a "local."

Floor Trader

On an exchange floor, a member who trades predominantly or exclusively on his/her own account. That is, the member does not represent a particular firm or client. A floor trader tends to profit from short-term price changes; they provide approximately 75% of liquidity in the market on a trading day. They contrast with floor brokers, who fill orders on behalf of clients. A floor trader is also called a registered trader or a registered competitive trader.

floor trader

An independent trader on a securities exchange who trades primarily for his or her own account. Floor traders generally attempt to profit from short-term price swings. They tend to add liquidity to the market and are required to make at least 75% of their trades against the last price change in the security traded. Thus, the majority of a floor trader's purchases must occur when the last price change in the security is a downtick. Also called competitive trader, registered competitive trader, registered trader.

Floor trader.

Unlike floor brokers, who fill client orders, floor traders buy and sell stocks or commodities for their own accounts on the floor of an exchange.

Floor traders don't pay commissions, which means they can make a profit on even small price differences. But they must still abide by trading rules established by the exchange. One of those rules is that client orders take precedence over floor traders' orders.

References in periodicals archive ?
A 29-year veteran of the flooring industry, Demaree took on the role of president in November 2005 to develop The Floor Trader brand and expand it nationally.
What clients find so valuable and unusual about our `DTA Morning Market Call & Briefing' e- newsletter is that we provide them with the most important and relevant numbers to watch, buy and sell pivots, moving averages and other key floor trader strategies, all combined in one easy-to-read morning e-mail.
The shift to a nearly continuous cycle would be the latest change for the tradition-bound Chicago institution, which has struggled to balance demands from new hedge funds and institutional investors against the floor traders, farmers and other smaller dealers who have been wary of change.
The TSE used to be a hive of activity as floor traders, called batachi, gave buy and sell orders on the floor.
Former floor traders like Sanches, together with current brokers and representatives of listed companies like mining giant Companhia Vale do Rio Doce, stand by to answer questions.
Half-hour weekly television program in cooperation with the Chicago Board of Trade; analysts, floor traders and industry personalities examine commodities strategies.
The NYSE still maintains a physical trading floor to leave trading open to floor traders.
PHOTO Floor traders at the New York Stock Exchange conduct business Friday.
The report also includes industry definition, 5-year historical trends on industry sales, establishments and employment and estimates on up to 10 sub-industries, including stock brokers, investment bankers and floor traders.
The launch of an open outcry trading pit by the New York Mercantile Exchange (Nymex) in the City of London marks a rapid return for the floor traders, many of whom feared the activity had been lost following the closure of the International Petroleum Exchange's pit in April.
Spokespersons/titles: Bob Petersen, president; Shelia Summers, VP marketing; KCBT floor traders.
The TSE decided in November to end floor trading by April, ending the 120-year practice in which floor traders representing their brokerages matched investors' buy and sell orders using special sign language.