The Skinny On Trading Rooms
For those who have watched some Wall Street movies, they will probably be familiar with a room where a lot of people are shouting at each other, talking on the phone, and running around. This is known as a trading room or a dealing room where all the deals happen. For those who are into Wall Street, here are a few things to know about these trading rooms.
Now, first thing to know is that these places are also known as dealing rooms because that is where they transact deals. These areas became popular sometime in the seventies wherein a lot of investment types came out such as bonds, stocks, foreign exchange, and funding. Because most of these investment types were scattered to various departments, banks decided it was easier to put them all together in a designated dealing room.
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.
Of course, eventually the 1900s showed the advance of higher technology wherein the usual teleprinter was replaced by what was known as a tele register. That was what happened when the New York Stock Exchange boomed and the volume of trades for various securities went up. Of course, this meant that more phones were contained in the room and so were 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.
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.
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.
Now as one can see, the dealing room has evolved over time ever since the technology in the financial world evolved as well. From simple tele registers to telephones, computers replaced the usual people who are shouting prices from brokers to other traders because computers can pass information much faster than voice can. So for those who have always been very curious about what happens in those Wall Street offices, the first place to visit is definitely the trading room since that is where all the action is.
Now, first thing to know is that these places are also known as dealing rooms because that is where they transact deals. These areas became popular sometime in the seventies wherein a lot of investment types came out such as bonds, stocks, foreign exchange, and funding. Because most of these investment types were scattered to various departments, banks decided it was easier to put them all together in a designated dealing room.
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.
Of course, eventually the 1900s showed the advance of higher technology wherein the usual teleprinter was replaced by what was known as a tele register. That was what happened when the New York Stock Exchange boomed and the volume of trades for various securities went up. Of course, this meant that more phones were contained in the room and so were 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.
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.
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.
Now as one can see, the dealing room has evolved over time ever since the technology in the financial world evolved as well. From simple tele registers to telephones, computers replaced the usual people who are shouting prices from brokers to other traders because computers can pass information much faster than voice can. So for those who have always been very curious about what happens in those Wall Street offices, the first place to visit is definitely the trading room since that is where all the action is.
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