Businesses do have an appropriate place where they try to establish their equity, futures, commodities, fixed income, sell securities and more. This same literal area is where traders buy and sell the securities in behalf of those client of financial firm that has employed them. When the exchange takes place it often is referred to as pit but that room is commonly known as trading rooms. These rooms have different securities and designed to have roughly circular areas where traders could step down into so they could engage in the actual trading.
As the actual trade takes place, there will only be one method used on the entire trading flow of the activity. They are calling that method as the open outcry. If it was an electronic type of trade, this stands as stark contrast so they basically are somehow the same but they are done in different platforms.
The first thing they get to do is bidding and offering. They usually are just doing this through verbally communicating the information regarding the deal. Often times they will be seen shouting these details or trying to do gestures to make the other parties understand what they are trying to imply. Hosts does hand signals too to communicate.
When the offers and bidding has been done and there have been a trader who confirmed their interest on the deal, the next thing that would happen is making contracts. This by the way are informal types of contracts and has no specific legal ties. Though, even with that fact traders still have to critically abide to what are the stated agreements within those papers because they have their integrities.
When making their deals, the means of recording the trading which has happen often is recorded separately. Which only means that the selling trader and the buying ones often records their trades on their own. That way, they are kept in track of the actions they made.
Right after they agreed and stumble upon confirmation of their trades, they will give their reports to the clearing house. That is the in charge for matching the deals they have declared. In any case that they do not match in any means, it will automatically be declared as out trade.
When that match is successful and there is no problem between it, both traders has to acknowledge the claim. However, instances where the match has not reached a non comparison risk, an out trade will be declared. This means that there were misunderstanding that incurred in ether of both traders or there have been mistakes on how clerks were recording the information.
Types of traders to vary and they all have different definition and roles. Some of them are named floor broker, usually they are just representatives asked to be an advocate in behalf of their clients. They only will do thing or decide based on how they were ordered and instructed.
There also are scalpers who are known to be independent traders and often is looking for temporary imbalances on the flow of orders. They do that so they can earn profit out from that. Typically through purchasing their sale of assets on their own accounts.
As the actual trade takes place, there will only be one method used on the entire trading flow of the activity. They are calling that method as the open outcry. If it was an electronic type of trade, this stands as stark contrast so they basically are somehow the same but they are done in different platforms.
The first thing they get to do is bidding and offering. They usually are just doing this through verbally communicating the information regarding the deal. Often times they will be seen shouting these details or trying to do gestures to make the other parties understand what they are trying to imply. Hosts does hand signals too to communicate.
When the offers and bidding has been done and there have been a trader who confirmed their interest on the deal, the next thing that would happen is making contracts. This by the way are informal types of contracts and has no specific legal ties. Though, even with that fact traders still have to critically abide to what are the stated agreements within those papers because they have their integrities.
When making their deals, the means of recording the trading which has happen often is recorded separately. Which only means that the selling trader and the buying ones often records their trades on their own. That way, they are kept in track of the actions they made.
Right after they agreed and stumble upon confirmation of their trades, they will give their reports to the clearing house. That is the in charge for matching the deals they have declared. In any case that they do not match in any means, it will automatically be declared as out trade.
When that match is successful and there is no problem between it, both traders has to acknowledge the claim. However, instances where the match has not reached a non comparison risk, an out trade will be declared. This means that there were misunderstanding that incurred in ether of both traders or there have been mistakes on how clerks were recording the information.
Types of traders to vary and they all have different definition and roles. Some of them are named floor broker, usually they are just representatives asked to be an advocate in behalf of their clients. They only will do thing or decide based on how they were ordered and instructed.
There also are scalpers who are known to be independent traders and often is looking for temporary imbalances on the flow of orders. They do that so they can earn profit out from that. Typically through purchasing their sale of assets on their own accounts.
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