For those who have watched some Wall Street movies, they will probably be familiar with a room where a lot of people are shouting at each other, talking on the phone, and running around. This is known as a trading room or a dealing room where all the deals happen. For those who are into Wall Street, here are a few things to know about these trading rooms.
As mentioned above, this is where the deals are taking place so it is really where all the action in Wall Street is. Just to give a brief background, these areas started popping out back in the late sixties to early seventies when each type of investment had their own department in banks and asset management companies. Banks found it much easier to lump them all in one place where they could be monitored, thus the dealing room was born.
When the dealing room first existed, it just contained a phone and a teleprinter, which were the two tools a broker used. The teleprinter was the machine that gave the financial quotes wherein the broker would print them out. The information printed out would be last price, lowest, highest, and volume.
Sometime during the mid 1900s, things became more advanced with a tele register which helped brokers read the securities on the New York Stock Exchange. Eventually, phones started filling up the areas because traders had to speak with various brokers to make trades from various brokers at the same time. At the same time, he or she also had a calculator to make computations.
Eventually, the eighties saw a more advanced technology come into the picture known as spreadsheets. This eventually came out along with the Windows OS. Microsoft Excel became the popular choice for traders because it had special formulas to make computations and an organized structure.
Eventually, the digital revolution came in and video displays eventually filled the computers of traders. Of course, this lead to the classic room where people shout the price quotes slowly changing to simple, quiet computers where trades could be made digitally. Also, information could also be found through the internet to make trades more precise.
These days, computers completely fill the dealing floors with the software that can be used for technical analysis. Before the software was introduced, fundamental analysis was more widely used because the entry of trades could not be calculated real time at that moment. However, real time graphs with indicators changed all that and allowed trader to be more precise at which prices to enter at.
Now, the thing about dealing floors is that they are always associated with Wall Street simply because that is where all of the cool stuff happens. No matter what the dealing room contains, it will always be where the traders will make the money and close the trades. For those who have watched movies like Wall Street or the Big Short and have enjoyed them thoroughly, learn more about where the Wall Street traders play by knowing more about trading floors.
As mentioned above, this is where the deals are taking place so it is really where all the action in Wall Street is. Just to give a brief background, these areas started popping out back in the late sixties to early seventies when each type of investment had their own department in banks and asset management companies. Banks found it much easier to lump them all in one place where they could be monitored, thus the dealing room was born.
When the dealing room first existed, it just contained a phone and a teleprinter, which were the two tools a broker used. The teleprinter was the machine that gave the financial quotes wherein the broker would print them out. The information printed out would be last price, lowest, highest, and volume.
Sometime during the mid 1900s, things became more advanced with a tele register which helped brokers read the securities on the New York Stock Exchange. Eventually, phones started filling up the areas because traders had to speak with various brokers to make trades from various brokers at the same time. At the same time, he or she also had a calculator to make computations.
Eventually, the eighties saw a more advanced technology come into the picture known as spreadsheets. This eventually came out along with the Windows OS. Microsoft Excel became the popular choice for traders because it had special formulas to make computations and an organized structure.
Eventually, the digital revolution came in and video displays eventually filled the computers of traders. Of course, this lead to the classic room where people shout the price quotes slowly changing to simple, quiet computers where trades could be made digitally. Also, information could also be found through the internet to make trades more precise.
These days, computers completely fill the dealing floors with the software that can be used for technical analysis. Before the software was introduced, fundamental analysis was more widely used because the entry of trades could not be calculated real time at that moment. However, real time graphs with indicators changed all that and allowed trader to be more precise at which prices to enter at.
Now, the thing about dealing floors is that they are always associated with Wall Street simply because that is where all of the cool stuff happens. No matter what the dealing room contains, it will always be where the traders will make the money and close the trades. For those who have watched movies like Wall Street or the Big Short and have enjoyed them thoroughly, learn more about where the Wall Street traders play by knowing more about trading floors.
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