Trading Floor

A trading floor is a physical marketplace where securities are bought and sold. Trading floors allow traders to create contracts and perform trades in person.

Initially, most stock exchanges hosted trading floors on which securities were bought and sold using open outcry methods. The advancement of electronic trading has led to the formation of purely electronic exchanges and to the closure of trading floors at many existing exchanges.

However, trading floors still play a role in the trading of options and other complex contracts with numerous variables. Trading floors are also commonly used by commodities exchanges.

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