Commodity Exchange Trading Floor

Open outcry is a method of communication between professionals on a stock exchange or futures exchange typically on a trading floor.

Commodity exchange trading floor.

Floor traders used to use the open outcry method in the pit of a commodity or stock exchange but now most of them use electronic trading systems and do not appear in the pit. Get the latest commodity trading prices for oil gold silver copper and more on the u s. Information flow floor brokers standing in a pit and watching non stop trading in a commodity may have a better feel for the action than a broker trading on an electronic platform. The term should not be confused with floor broker floor traders are occasionally referred to as registered competitive traders individual.

While trading on the floor of the exchange is being quickly eroded by electronic trading platforms the open outcry method of trading doesn t appear to be completely going away any time soon. James kim sales trader at saxo capital markets australia examines trading strategies for the week in a technical analysis of forex and equity charts. He also looks at commodities such as oil gold and copper. The part of the trading floor where this takes place is called a pit.

It involves shouting and the use of hand signals to transfer information primarily about buy and sell orders. The floor where trading activities are conducted. The floor trader must abide by trading rules similar to those of the exchange specialists who trade on behalf of others. A floor trader is a member of a stock or commodities exchange who trades on the floor of that exchange for his or her own account.

The floor broker can relay these insights to the customer via the upstairs commodities broker. Kim looks at trends in the us dollar index and looks at pairs such as eurusd audusd and usdjpy.