Floor trader
A floor trader is a member of a
These traders are subject to a screening process before they can trade on the exchange. The people who operate as floor traders are in an
Process of becoming a floor trader
The process of becoming a floor trader, especially for those with insufficient capital, and lacking knowledge and experience, often begins by working as a clerk. The completion of a business degree at a university is not necessary, and very few floor traders used this to begin their careers. Those who have earned a higher degree rarely have an advantage over other floor traders, who have learned their craft by standing on the floor and actually trading[citation needed].
Much experience must be gained about the stock exchange as possible because it is an extremely fast-paced and competitive work environment. This is crucial to becoming a successful floor trader. Some may decide to work for a brokerage to get an idea of how the system functions or, as mentioned, to work as a clerk or trade-checker for another person. This is often necessary in order to save money for purchasing a membership which can be expensive, though memberships can be leased on a monthly basis, rather than purchased.
Every floor trader (FT) is required to file a completed online Form 8-R and have a fingerprint card. They must also have proof from a contract market that they have been granted the trading privileges to work on the trading field. A non-refundable Floor Trader Application Fee, that comes at the cost of $85.00, is also required to become certified as a floor trader.[1]
Every non-natural person floor trader (FTF) is required to file a completed online Form 7-R. To be granted trading privileges, he must abide by the same process as the floor trader. The application fee comes at a higher cost than an FT with it, totaling $200.[1]
Rise of machines
The first major electronic alternative was the
See also
- Stockbroker
- Broker/dealer
- Floor broker
- Proprietary trading
- Market maker
References
- ^ a b "Floor Trader (FT)". National Futures Association. Retrieved 2 April 2014.
- ^ Simpson, Stephen D. "The Death Of The Trading Floor". Investopedia. Investopedia US.