floor trader investment & finance definition
A
member of a future or options exchange who buys or sells futures and options
for his or her own account. Also called a local trader.
See floor trader in Wall Street Words
An independent trader on a securities exchange who trades primarily for his or her own account. Floor traders generally attempt to profit from short-term price swings. They tend to add liquidity to the market and are required to make at least 75% of their trades against the last price change in the security traded. Thus, the majority of a floor trader's purchases must occur when the last price change in the security is a downtick. Also called competitive trader, registered competitive trader, registered trader.
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