competitive trader


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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.

competitive trader

Competitive trader.

Competitive traders, also known as registered competitive traders or floor traders, buy and sell stocks for their own accounts on the floor of an exchange.

Traders must follow very specific rules governing when they can buy and sell. But since they trade in large volumes and do not pay commissions on their transactions, they can profit from small differences between the prices at which they buy and sell.

References in periodicals archive ?
What happened in the equities space is now occurring in options, and those traders still using older, slower, screen-based technologies are being marginalized by more competitive traders leveraging the most up-to-date tools and technologies available.

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