Q: Why do people yell in the stock exchange?
I know how stock trading works (in theory) but when I see the stock exchange in TV shows/movies it is a loud, crowded room with a lot of people yelling... what are they yelling about? About buying stocks? How does anyone hear anything? I have just always wondered what is going on there! I thought most stock sales were done online, so what is going on in the stock exchange itself?
Today stock exchange trading floors have 90% less people than they did 10-15 years ago primarily due to computers replacing the need for human trading. And you're right! Computer sales are the primary means for trading these days If you tune into CNBC right now, you'll usually see a somewhat large group of traders on the floor of the exchange that are there just for the opening of trading (the same with the close of trading). In between then, it's pretty much quiet with the exception of Jim Cramer screaming at the tv camera.
I had the privledge of going to the New York Stock Exchange a few months ago, and there floor traders down there weren't busy at all. I went, shook hands, got to look at their trading screens, and got some business cards. It's not like the 1980's Wall Street movie where people are climbing over each other to get a trade done, unfortunately. Now that's not to say there isn't some sporatic moments where there's a big news story comming down or a new IPO listing.
Now if you're watching Ferris Bueller's day off, you aren't seeing an exchange. You're seeing a commodities, bond trading, options, futures, and forex trading pit. There you'll hear alot of yelling at all times during the day. By the way, that form of trading is called open outcry where trades are executed through other physical human beings. The interesting thing about that is it's still here despite the rise of the computerized trading. In fact, some of the people standing on the floor yelling each other have tablet computers where they're actively trying to disseminate whether they can get a better price on the floor or through the computer system.
You'll also notice that alot of the floor traders use hand signals to communicate trades across the room....they also use headsets for that as well. There basically communicating price and quantity for what they want to buy But you're right, the yelling is persistent down there.
Source yahoo
A: Best Answer:
Actually,
Today stock exchange trading floors have 90% less people than they did 10-15 years ago primarily due to computers replacing the need for human trading. And you're right! Computer sales are the primary means for trading these days If you tune into CNBC right now, you'll usually see a somewhat large group of traders on the floor of the exchange that are there just for the opening of trading (the same with the close of trading). In between then, it's pretty much quiet with the exception of Jim Cramer screaming at the tv camera.
I had the privledge of going to the New York Stock Exchange a few months ago, and there floor traders down there weren't busy at all. I went, shook hands, got to look at their trading screens, and got some business cards. It's not like the 1980's Wall Street movie where people are climbing over each other to get a trade done, unfortunately. Now that's not to say there isn't some sporatic moments where there's a big news story comming down or a new IPO listing.
Now if you're watching Ferris Bueller's day off, you aren't seeing an exchange. You're seeing a commodities, bond trading, options, futures, and forex trading pit. There you'll hear alot of yelling at all times during the day. By the way, that form of trading is called open outcry where trades are executed through other physical human beings. The interesting thing about that is it's still here despite the rise of the computerized trading. In fact, some of the people standing on the floor yelling each other have tablet computers where they're actively trying to disseminate whether they can get a better price on the floor or through the computer system.
You'll also notice that alot of the floor traders use hand signals to communicate trades across the room....they also use headsets for that as well. There basically communicating price and quantity for what they want to buy But you're right, the yelling is persistent down there.
Source yahoo
0 nhận xét:
Đăng nhận xét