People who have worked in asset management are all familiar with the environment that traders stay in. While most trading rooms are already filled with computers already, there was a time when it was just phones that the traders used to close deals while analyzing the charts. For those who have a genuine interest in the financial world, here are some things to know about these 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.
During the middle of the 1900s, technology advanced and the tele register was eventually introduced following the boom of the New York Stock Exchange. Of course, the volume of investments also went up which meant that more traders had to increase their productivity and investment diversity. Due to this, more phones were added in typical dealing floors along with electronic calculators.
In the eighties, spreadsheets became more widely used for easier handling of data. This was back when Windows became very popular in a lot of financial offices. Microsoft Excel, in particular, was a very popular tool used by traders in the dealing room as these areas quickly became filled with computers instead of tele registers.
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.
While the financial markets evolved and the art of trading became more sophisticated, so did the whole dealing room setup. Although the room started out with just tele registers to computers with rather sophisticated software or applications to make trading much easier. If one would look at a trading floor today, he or she will still see the traders but instead of shouting prices, they are now in front of their computers trying to make the best trades that they can.
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.
During the middle of the 1900s, technology advanced and the tele register was eventually introduced following the boom of the New York Stock Exchange. Of course, the volume of investments also went up which meant that more traders had to increase their productivity and investment diversity. Due to this, more phones were added in typical dealing floors along with electronic calculators.
In the eighties, spreadsheets became more widely used for easier handling of data. This was back when Windows became very popular in a lot of financial offices. Microsoft Excel, in particular, was a very popular tool used by traders in the dealing room as these areas quickly became filled with computers instead of tele registers.
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.
While the financial markets evolved and the art of trading became more sophisticated, so did the whole dealing room setup. Although the room started out with just tele registers to computers with rather sophisticated software or applications to make trading much easier. If one would look at a trading floor today, he or she will still see the traders but instead of shouting prices, they are now in front of their computers trying to make the best trades that they can.
About the Author:
Learn how to make money in trading rooms with top tips from this informative website. For guidance, see the related homepage today at http://www.marketscholars.com.
No comments:
Post a Comment