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 ?
MarketWise teaches a rules-based technical approach, created by professional traders including NYSE Specialists, Nasdaq Market Makers, and floor traders from the CBOE and Chicago Mercantile exchange.
The documentary, which has received critical acclaim from: The Wall Street Journal, Barron's, NPR and many others, offers an in-depth look at the lives of floor traders after the advent of screen trading and other technological advances re-shaped the trading world.
ePIT provides a migration path to the Internet for exchanges, established and emerging cash markets, brokers, FCMs, floor traders and locals.
Penson GHCO, a leading provider of technology products and services to active futures traders, currently employs about 85 people at its Chicago headquarters and in New York, Minneapolis and London offices, and serves approximately 400 clients, including floor traders, introducing brokers, non-clearing FCMs, commercial grain companies and other institutional and professional trading firms.
Clients include institutional investors, money managers, floor traders and high net worth individuals.
MagnaCarta Capital Markets is an independent Investment Banking firm that operates under the auspices of the Jitney Group, a broker- dealer that was created by floor traders of the Montreal Stock Exchange who became suddenly orphan when the exchange floor closed in 2001.
NEW YORK -- In response to The New York Stock Exchange's proposed acquisition of Archipelago, The Wall Street Transcript (TWST) conducted interviews with leading investment bankers, lawyers, accountants and floor traders to attempt to determine how such a large transaction with a pillar of the financial community would impact the reputation of the reverse merger process.
Preferred which employs 100 staff is an established self-clearing broker-dealer offering option, stock, futures, and basket trade executions for individual customers, option floor traders, and money management institutions.
com also features a daily stock Market Report video webcast featuring Chicago Stock Exchange floor traders and monthly reports from the Federal Reserve Banks of New York and Chicago.
He has led expert trainings in the financial industry for floor traders, fund managers and brokers, and has conducted extensive sales trainings for Fortune 500 companies including General Motors, Re-Max, and Minolta.
Floor traders at the New York Stock Exchange were getting set for the stock to begin trading, with the exchange continuing to match millions of share orders.
Apart from the high profitability of these banks, the good dividends distributed by these lenders to the shareholders could explain why there was occasional block trading in recent weeks," Jean Michel, one of the floor traders at the Arab Finance Corporation told The Daily Star.