how the hell do stock market trading floors operate?

[tali122]

imagine hundreds of us in a room asking and answering questions in complete disoganisation and choas by shouting over each other in complete pandomoneum- so how the hell do stock market trading floors operate in such a frienzedly choatic way ?- sure money has to be made quickly, but the scope for mistakes and confusion and misinterpretation must be incredible

[Loosehead]

It does look like a shambles but in reality it is very organised. There are a set of signs that the traders use to indicate buy/sell and a recognised standard for prices etc. The number one thing though is honour, ie you stand by your word, no one ever welshes on a deal. With practise these guys can buy and sell accurately in the blink of an eye. Watch the film "Trading places" brilliant!

[ludwig]

Good question tali122. I have often wondered this myself. I find it bizarre that in these days of electronic transactions and computerised trading systems, it still comes down to a bunch of people in funny jackets screaming and hand waving at each other like lunatics in a bear pit.

[acw]

There's an epsiode of spooks where Danny goes undercover as a trader.  Not on the stockmarket, but in a bank.  They all had lots of phones.  And a stuffed toy fox.  Hope that helps!

 

I think if we were all in one room together (with name badges on) it would go like this:

1. Look round searching for names you recognise.
2. Think you spot someone.
3. Realise it's an imposter. 
4. Have a go at them.
5. Finally see someone whose name you recognise.
6. Be shocked cos they don't look anything like you thought. 
7. Have a good chinwag.
8. Someone mean jumps in and starts being rude.
9. We all have a jolly good bicker and whinge.
10. Everyone decides - blow this for a game of soldiers I'm going for a pint. 

With the stockexchange - i suppose they have to be AMAZINGLY alert.  And they all get their jackets from the same place Richard Whitely and John Snow get their ties!!  Hurrah!

[tali122]

what?- honour amongst stockbrokers! :)
also ive watched trading places many times and even though i passed my economics and commerce exams- i still dont know how they pulled off bankruptcy for the two scheming brothers- other than selling cheap when the brothers had bought high

[BillyNoMates]

All that trading floor stuff with the bright blazers and hand signals has well gone.

It is all electronic now and has been for quite a few years.

[Delaney]

BillyNoMates, you're wrong. Stock exchanges like NASDAQ are fully electronic because they were built that way from the ground up. However, the Dow Jones is not that way, and still has the crazy coats and mob sense of style.