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Importance of Trading Floor for a trader

The section of the stock market known as the trading floor is where the actual open outcry process of buying and selling shares takes place. A vast range of securities, including derivatives, equities, bonds, and commodities, are available on the trading floor. In order to execute trading orders for their clients or a bank, brokers and traders are really housed on the Bear Street trading floor.

How Does Trading Floor Work?

Its primary goal is to make business transactions easier by offering a location for buyers and sellers to meet. Whether through digital means or face-to-face interactions, the goal of bringing buyers and sellers together to facilitate the transfer of assets remains the same. A platform for making real-time price calculations is offered by the Trading Floor in Indore. On this platform like Bear Street, the interaction between market supply and demand determines asset values.

Structure of Trading Floor

Trading orders can be executed as quickly as possible on a circular trading floor since it can hold a high number of physically present traders and brokers. There's a circular area on the trading floor called the Pit. It is imperative that every trade occur within the pit of a trading floor. The options available to the merchants are to face the outside world by stepping into the center of the pit or to face the interior world by standing on the steps.

How is trading done on a trading floor?

When trading, every trader on the Trading Floor in Indore adheres to the open outcry system. To engage in floor trading, brokers and traders need to complete the following actions:

Bidding and Offering

Sometimes the open outcry system acts a little strangely. This comes before the vocal exchanges that occur between brokers and dealers as they shout out bids and offers. In order to indicate that they intend to finish the instructions, they can also use hand gestures. The hours immediately before and after market opening and closure are the busiest on the trading floor. Bids are impacted by key information releases, regardless of how good or bad the news is. The runner, also known as the courier, is in charge of delivering the orders from customers or businesses to the traders who are located inside the pit. Traders can wave or yell orders to the broker to have them executed.

Informal Contract Creation:

An oral agreement between a broker and trader to accept an offer creates an informal contract between them. When one side shouts out a price for a security and the other party accepts, traders and brokers enter into an informal agreement. An informal contract's participants are immediately and firmly obliged to respect its conditions and formalize it into a legally binding agreement.

Recording the Deal:

The transaction is registered once an informal agreement between the broker and dealer has been reached. To enable independent transaction recording, the trader and broker keep a distance of twenty to thirty feet from one another while placing orders continually.


Once the trader and broker have completed the deal, all parties involved must confirm that it is lawful and recognize its completion before the next day's trading session starts. To the best of everyone's knowledge, the deal closed smoothly, and all parties knew exactly what they were getting into.

Final Words

A Trading Floor in Indore like Bear Street is fundamentally more than just a location or medium where financial instruments are purchased and traded. In this dynamic ecosystem, human and computer-based market participants collaborate to carry out transactions that upend the global financial system. The transition from human trading to automate trading reflects the larger technology transformation that the society is going through.

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