The stock market is a financial market where buying and selling of stocks took place. Some financially able and business minded people like to invest in the stock market. They study the stock market each business day. They took notice of which fund is falling and which is rising in prices. What the majority was not aware of is that all the financial trades happen in the trading rooms.
Securities are being bought and sold to traders like commodities, foreign exchange and stocks. They are the representative of their own clients in doing trade in these rooms. Telephone, online markets and the like are the trades occurring here.
In surviving this environment, the trader must arm himself with few characteristics which will prepare him during the aggressive moments. Knowledge is power and that is their weapon in understanding the market. They must also have the needed experience in the trade. Their experience will let them prepare for any financial loses and will only use their risk capital. This is called such because they are expendable funds in order to gain large financial investments.
Strategizing is the most important quality that they should have. It gives them an advantage over others in minimizing financial loses and evading risks. They could either adapt trading news, mergers and acquisition, arbitrage, or swing trading in to their disposal. Of these, only the last one can give high rewards and high risks to traders. They also must have discipline to not get mentally affected by failures and financial loses. It happens from time to time. Financial gains and profits will eventually materialize.
The main and only method of communicating in these rooms is open outcry. Here, every trader will shout and use gestures in order to gain attention and to transfer trade information. The environment is very fast paced that if one gets distracted, he will most likely miss pertinent information.
Specifically, there are three ways to communicate their bids and offers. One is to scream loudly to the other parties on the floor. Second is waving their arms like crazy just to get their attention. Third is the calmest conduct in comparison to the other two, hand signals.
Deals are made between the two traders. Upon agreement, the clearing member of both parties will inform the clearinghouse about their deal. The clearinghouse will try to match their deals with each other and if it does, the traders will claim acknowledgement on the said deal.
The deal is considered as an out trade if no match has been found. There are only two reasons why this occurs. The first one is that they have not come up to the same understanding. The second is an error on the agreement made by one of them. Before the following trading day, they have corrected any errors and have resolved the issue.
Informal contracts are common here. It is because throughout the shouting, no one has the time to do a written one. Within these rooms, they are binding and should never be breached. Trust is the main key player that attracts traders to do business with the others. If not honored, this can affect the stock exchange market the next day.
Securities are being bought and sold to traders like commodities, foreign exchange and stocks. They are the representative of their own clients in doing trade in these rooms. Telephone, online markets and the like are the trades occurring here.
In surviving this environment, the trader must arm himself with few characteristics which will prepare him during the aggressive moments. Knowledge is power and that is their weapon in understanding the market. They must also have the needed experience in the trade. Their experience will let them prepare for any financial loses and will only use their risk capital. This is called such because they are expendable funds in order to gain large financial investments.
Strategizing is the most important quality that they should have. It gives them an advantage over others in minimizing financial loses and evading risks. They could either adapt trading news, mergers and acquisition, arbitrage, or swing trading in to their disposal. Of these, only the last one can give high rewards and high risks to traders. They also must have discipline to not get mentally affected by failures and financial loses. It happens from time to time. Financial gains and profits will eventually materialize.
The main and only method of communicating in these rooms is open outcry. Here, every trader will shout and use gestures in order to gain attention and to transfer trade information. The environment is very fast paced that if one gets distracted, he will most likely miss pertinent information.
Specifically, there are three ways to communicate their bids and offers. One is to scream loudly to the other parties on the floor. Second is waving their arms like crazy just to get their attention. Third is the calmest conduct in comparison to the other two, hand signals.
Deals are made between the two traders. Upon agreement, the clearing member of both parties will inform the clearinghouse about their deal. The clearinghouse will try to match their deals with each other and if it does, the traders will claim acknowledgement on the said deal.
The deal is considered as an out trade if no match has been found. There are only two reasons why this occurs. The first one is that they have not come up to the same understanding. The second is an error on the agreement made by one of them. Before the following trading day, they have corrected any errors and have resolved the issue.
Informal contracts are common here. It is because throughout the shouting, no one has the time to do a written one. Within these rooms, they are binding and should never be breached. Trust is the main key player that attracts traders to do business with the others. If not honored, this can affect the stock exchange market the next day.
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