By Catherine Hamilton If one has watched movies like The Wolf of Wall Street, then he or she might be familiar with those areas wherein pe...
If one has watched movies like The Wolf of Wall Street, then he or she might be familiar with those areas wherein people are shouting stock prices. Well, these areas are known as trading rooms and they are places in which stock or other transactions would take place. If one has always been fascinated by Wall Street, then here are a few facts to know about these places.
Now, these places are also known as the dealing floor as this is literally the room where all of the deals are made by the traders. The first dealing room came out sometime during the very early seventies because banks were not at ease with so many departments for each investment type. With that, the first bank to create a dealing room which is Morgan Stanley, decided to put all the traders just under one roof to make things easier.
Now, when the dealing room started out, only a phone and a teleprinter was found there as that was the only tools a broker used. The teleprinter gave the price quotes as well as printed them out on a special piece of paper. The teleprinter would print out the highs, lows, and last price of the investment.
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.
When the first spreadsheet software came out, the traders made full use of it. This was none other than Microsoft Excel from Windows. With that, the dealing floors slowly replaced their tele registers and their phones with computers that had the latest office software that could be used for the work.
With that, the dealing floors were eventually replaced with computers that had all the necessary software. With that said, dealing floors no longer became rooms where people shouted the prices of financial quotes and such but rather a room where trades were done electronically. Also, the computers had all the necessary information for trades.
Today, there are special graphs with indicators that can be used for overall technical analysis for trades. Back before the software were invented, fundamental analysis was used more often since graphs could not be updated quickly and real time. However, the real time updating of the graphs enabled the traders to have more precise trades for their clients.
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.
Now, these places are also known as the dealing floor as this is literally the room where all of the deals are made by the traders. The first dealing room came out sometime during the very early seventies because banks were not at ease with so many departments for each investment type. With that, the first bank to create a dealing room which is Morgan Stanley, decided to put all the traders just under one roof to make things easier.
Now, when the dealing room started out, only a phone and a teleprinter was found there as that was the only tools a broker used. The teleprinter gave the price quotes as well as printed them out on a special piece of paper. The teleprinter would print out the highs, lows, and last price of the investment.
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.
When the first spreadsheet software came out, the traders made full use of it. This was none other than Microsoft Excel from Windows. With that, the dealing floors slowly replaced their tele registers and their phones with computers that had the latest office software that could be used for the work.
With that, the dealing floors were eventually replaced with computers that had all the necessary software. With that said, dealing floors no longer became rooms where people shouted the prices of financial quotes and such but rather a room where trades were done electronically. Also, the computers had all the necessary information for trades.
Today, there are special graphs with indicators that can be used for overall technical analysis for trades. Back before the software were invented, fundamental analysis was used more often since graphs could not be updated quickly and real time. However, the real time updating of the graphs enabled the traders to have more precise trades for their clients.
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.
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