What does Floor Trading?

2023-06-22
Summary:

In floor trading, parties trade through the stock exchange's system, with prices and quantities determined by market supply and demand. The process is transparent, open, and standardized.

Many investors have seen the term 'Floor trading' during their investment process, but many investors do not fully understand what it means. Today, we will explain it to everyone.

floor trading

What is Floor Trading?

Fltrading, also known as exchange trading, refers to the trading method in which all supply and demand parties gather on the exchange for competitive trading.


This trading method has the characteristics of the exchange collecting margin from trading participants, being responsible for clearing, and assuming performance guarantee responsibilities.


On the exchange, trading also refers to the normal trading hours during which the trading volume is relatively high and the trading is active.


On the market, traders are generally designated by the brokerage company on the exchange's seat, responsible for submitting purchase and sale orders, etc. throughout the company, which is commonly known as a vest.


Floor Trading has the Following Characteristics:

1. Standardized and transparent trading process: On the exchange, trading is conducted within the stock exchange, and the trading process is regulated by the stock exchange. The trading process is standardized and transparent, and trading information is publicly available. Investors can query trading information through the trading system of the stock exchange.


2. Disclosure of trading prices: Trading prices are determined by market supply and demand and are open and transparent. Investors can trade based on market conditions, avoiding information asymmetry.


3. Relatively low transaction costs: The costs of floor trading, including commissions and stamp duties, are relatively low. Compared to off-exchange trading, these costs are more transparent and standardized.


4. High trading efficiency: Floor trading is highly efficient, with the trading system automatically matching buy and sell orders. The process is fast and simple, allowing investors to quickly complete transactions.


5. Relatively low trading risk:  Floor trading carries relatively low risk, as information is open and transparent, and the process is standardized, making risks more controllable.


6. Diversification of trading varieties: Floor trading includes various assets like stocks, bonds, and funds, allowing investors to choose based on their needs.


7. Large trading volume and long trading time: The exchange handles large volumes of trades and operates for extended hours, catering to the needs of different investors.


Overall, floor trading has the advantages of standardized trading processes, transparency, high trading efficiency, and relatively low trading risks, making it one of the most important trading methods in the securities market.

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Business Address: The Leadenhall Building, 122 Leadenhall Street, London, United Kingdom, EC3V 4AB. Email Address : [email protected]. Telephone : +44 20 3376 9662
Disclaimer: EBC Financial Group explicitly does not participate in any cryptocurrency activities or offer Crypto Contracts for Difference (CFDs). Our financial services solely pertain to traditional instruments. Clients are advised that any references to crypto-related services using the EBC name are inaccurate and unauthorized. Any reference to past performance is not indicative of future performance. The information contained in this website is provided for reference only and does not constitute any investment advice.
Regional Restrictions: EBC does not offer any services to citizens and residents of certain jurisdictions including: Afghanistan, Belarus, Burma (Myanmar), Canada, Central African Republic, Congo, Cuba, Democratic Republic of the Congo, Eritrea, Haiti, Iran, Iraq, Lebanon, Libya, Malaysia, Mali, North Korea (Democratic People's Republic of Korea), Russia, Somalia, Sudan, South Sudan, Syria, Ukraine (including Crimea, Donetsk, and Luhansk Regions), the United States, Venezuela, and Yemen. For more information, please check out our FAQs.
Compliance Disclosure：The website can be accessed globally and is not specific to any entity. Your actual rights and obligations will be determined based on the entity and jurisdiction that you choose to be regulated.There may be local laws and regulations which prohibit or limit your rights to access, download, distribute, disseminate, share or otherwise use any or all of the documents and information published on this website.
Risk Warning: Trading Contracts for Difference (CFDs) are complex financial instruments and come with a high risk of losing money rapidly due to leverage. Trade on margin carries a high level of risk and may not be suitable for all investors. Before deciding to trade Forex and CFDs, you should carefully consider your trading objectives, level of experience and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial trading capital. We recommend that you seek independent advice and ensure you fully understand the risks involved before making any investment decision. Please read the relevant risk disclosure statements carefully before trading.
EBC Financial Group is a co-brand shared by a group of entities including:
EBC Financial Group (SVG) LLC is authorized by the St.Vincent and the Grenadines Financial Services Authority(SVGFSA),and the company registration number is 353 LLC 2020. with registered address at Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines.
Other Relevant Entities
EBC Financial Group (UK) Limited is authorised and regulated by the Financial Conduct Authority. Reference Number: 927552. Website: www.ebcfin.co.uk
EBC Financial Group (Australia) Pty Ltd (ACN: 619 073 237) is authorised and regulated by the Australian Securities and Investments Commission (Number: 500991). EBC Financial Group (Australia) Pty Ltd is a related entity of EBC Financial Group (SVG) LLC. The two entities are managed separately. The financial products and services offered on this website are NOT provided by the Australian entity and no recourse against the Australian entity is available.
EBC Financial Group (Cayman) Limited is licensed and regulated by the Cayman Islands Monetary Authority (Number: 2038223). Website: www.ebcgroup.ky
Business Address: The Leadenhall Building, 122 Leadenhall Street, London, United Kingdom, EC3V 4AB. Email Address : [email protected]. Telephone : +44 20 3376 9662
Disclaimer: EBC Financial Group explicitly does not participate in any cryptocurrency activities or offer Crypto Contracts for Difference (CFDs). Our financial services solely pertain to traditional instruments. Clients are advised that any references to crypto-related services using the EBC name are inaccurate and unauthorized. Any reference to past performance is not indicative of future performance. The information contained in this website is provided for reference only and does not constitute any investment advice.
Regional Restrictions: EBC does not offer any services to citizens and residents of certain jurisdictions including: Afghanistan, Belarus, Burma (Myanmar), Canada, Central African Republic, Congo, Cuba, Democratic Republic of the Congo, Eritrea, Haiti, Iran, Iraq, Lebanon, Libya, Malaysia, Mali, North Korea (Democratic People's Republic of Korea), Russia, Somalia, Sudan, South Sudan, Syria, Ukraine (including Crimea, Donetsk, and Luhansk Regions), the United States, Venezuela, and Yemen. For more information, please check out our FAQs.
Compliance Disclosure：The website can be accessed globally and is not specific to any entity. Your actual rights and obligations will be determined based on the entity and jurisdiction that you choose to be regulated.There may be local laws and regulations which prohibit or limit your rights to access, download, distribute, disseminate, share or otherwise use any or all of the documents and information published on this website.
Risk Warning: Trading Contracts for Difference (CFDs) are complex financial instruments and come with a high risk of losing money rapidly due to leverage. Trade on margin carries a high level of risk and may not be suitable for all investors. Before deciding to trade Forex and CFDs, you should carefully consider your trading objectives, level of experience and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial trading capital. We recommend that you seek independent advice and ensure you fully understand the risks involved before making any investment decision. Please read the relevant risk disclosure statements carefully before trading.
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