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.
Hello Kitty, wearing a pink dress, sounded the bell, signaling the end of the day's trading at the exchange, and blew kisses, raising a cheer among floor traders.
The TSE used to be a hive of activity as floor traders, called batachi, gave buy and sell orders on the floor.
Given the increasing volume of transactions, the cost of integrating and maintaining middleware and hardware, and the need to provide rapid response capabilities to floor traders on wireless devices led to the NYSE selecting a new IT infrastructure.
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.
It made sense to the floor traders and that's what mattered.
He doesn't just mean people will buy and sell via e-mail messages to online brokers, but that they'll actually trade with each other, much as floor traders do at traditional stock and futures exchanges.
However, the potential for arbitrage, combined with competition from floor traders, can mean that the specialist lowers the bid price by less than the ask price.
PHOTO Floor traders at the New York Stock Exchange conduct business Friday.
Long-term traders include the likes of institutional traders, while short-term traders are generally floor traders or individuals.
The latter is a reasonable assumption, given the inertia historically displayed by floor traders and the fast growth of futures trading and new futures markets overseas.
As the market heats up on this day, floor traders, yelling in the faces of other traders, employ timeless hand signals as they attempt to strike a contract price to deliver the grain they require some months ahead.