Chapter 04 · Section 4.1

Trading Floor Advantage

A major advantage of the trading floor system compared to the automated exchange system is:

a) that all trades are made by open outcry, which is not possible on the computerized system;
No. In an automated system, the open outcry is replaced by electronic broadcasting of prices. Moreover, this system is (at least potentially) much more accurate.
b) that traders can see and hear each other, and thereby get a feeling for what happens in the market.