Floor trader

Updated: Aug 20, 2021

Members of the Stock Exchange who deal on the floor of the Exchange itself are referred to as floor traders. Under the new system there will be an additional category of members known as external members. These will comprise those individuals or companies which have bought or invested in member firms and will themselves be treated as members to the extent of coming under the control of Council of the Stock Exchange. They will not, however, be permitted to trade on the floor of the Exchange nor will they be eligible for election to the council. The term floor trader is also used with reference to persons and firms deahng on the floor of the London Commodity Exchange and on that of the Baltic Exchange. It is also used in connexion with the transaction of insurance business by brokers at Lloyd’s.

Reference: The Penguin Business Dictionary, 3rd edt.

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James Knight
Editor of Education
James is the Editor of Education for Invezz, where he covers topics from across the financial world, from the stock market, to cryptocurrency, to macroeconomic markets.... read more.