What is a Floor Trader?
Answer:
A floor trader is a person who buys 


and sells stocks and commodities for their own accounts. Floor traders work in what is often referred to as the “pit” on the floor of an exchange market.

Floor traders are also known as Registered Competitive Traders, Individual Liquidity Providers, and locals. Floor traders can make a profit on small price differences because they don‘t have to pay commissions. They are able to have immediate access to futures and options trading information. Because of this, they are able to execute trades quickly. However, they still must follow rules of the exchange which means that client orders filled by floor brokers take priority over floor trader orders.

Floor traders buy or lease a membership on an exchange which can cost from $50,000 to more than $1 million dollars. However, as automated trading systems continue to increase, it is likely that opportunities for floor traders will possibly decrease.
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