Floor Trader

Floor trader is the member of the stock market that exchanges the commodities; he does the trading on the floor on exchange for his account. The floor trader should be abiding by the rules of trading. They are similar to the exchange specialist. This specialist does the trades on the behalf of other traders. Before the floor trader trades on exchange the trader should be a subject to the screening process. The floor traders are mostly seen on the television or the movies. They are on the system of open outcry that is replaced by the system of automated trading.

To become a floor trader the person should be qualified in the University. He should be having the degree of the business and the master’s degree. The person can also have the bachelor’s degree. Fundamental studies and analyse are the guides in the career of floor trader. As well as degree the person should be experienced in the stock market exchange, as experience and skilled people can be successful in the field of trading. Floor trader and floor broker are two different people that are most of the times mistaken as being similar. Some people decide to work as a floor broker to gain knowledge and experience. This helps them to have the idea of the tasks. The second task after the degree is to complete the file online that is the Form 8-R and should also have the card of fingerprint as a proof. After the Form 8-R the person is required to fill an online Form 7-R.

The floor trading includes trading with the help of a machine. Instinet was the first major electronic machine that was able to do the bypassing and could handle the trading process. The examples are Bloomberg and Archipelago. Under the floor trading the use of electronic machines were used for the exchanges. This system has benefited the traders by reading the results online with the lower error rates when compared to the computers that do not pick the verbal signal. The use of computers in the olden days gave people the opportunity to literally take part in the trades instantly. This had an immediate access. The next step was the Forex Robots. These robots were programmed to do the trade on signals of pre-determined forex signals. If the technical conditions met the robot was late to show. The trader should be aware of the current market situations and work sincerely on the trades.

The floor trader should have flexibility to make the changes that are needed in the system of trading. Trading may sometimes need sudden changes which should be accepted by the trader. The floor traders need to have qualities as discipline, sincere and should be alert of all the stock market news. The latest news of the stock market can be checked on the internet. The floor trading signifies money. The trader produces the Forex signal for the customers as well as does the entry and exit of the trade.