Trading

The Confessions of a Floor Trader

Sara

What do floor traders do? They execute transactions. They are risk takers who put their own capital on the firing line.

An exchange member who executes transactions from the floor of the exchange exclusively for his or her own account. Floor traders used to use the "open outcry" method in the pit of a commodity exchange, but now most of them use electronic trading systems. They fulfill an important role in commodity and stock market by risking their own capital to trade futures, options or stocks, thereby providing liquidity and narrowing bid-ask spreads.

A floor trader is subject to a screening process before he or she can trade on the exchange. Full Article