Floor trader

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

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.