The trading floor is the active trading area of a stock exchange, such as the New York Stock Exchange (NYSE).
Securities are traded auction-style on an exchange trading floor. That means the prices are set by competitive bidding between brokers representing buyers and brokers representing sellers, following a series of clearly established exchange rules.
Many market maker firms refer to the space in their offices that they have allocated for trading as their trading floor. The same term is used to describe the trading areas in banks and brokerage firms.
- Browse Related Terms: Ask, BID, bid and ask, Dealer, Firm quote, Make a market, Market maker, Pink Sheets, Quotation (Quote), Trading floor