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.
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.
Now, one interesting thing to note about the dealing room is that it was not always as high tech as it is today. In fact, the only tools that the traders had at their arsenal were a simple teleprinter and a phone. The teleprinter was used to print out the price quotes of the security with information such as last price, highest price and lowest price.
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.
Now, the thing about dealing floors is that they are always associated with Wall Street simply because that is where all of the cool stuff happens. No matter what the dealing room contains, it will always be where the traders will make the money and close the trades. For those who have watched movies like Wall Street or the Big Short and have enjoyed them thoroughly, learn more about where the Wall Street traders play by knowing more about 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.
Now, one interesting thing to note about the dealing room is that it was not always as high tech as it is today. In fact, the only tools that the traders had at their arsenal were a simple teleprinter and a phone. The teleprinter was used to print out the price quotes of the security with information such as last price, highest price and lowest price.
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.
Now, the thing about dealing floors is that they are always associated with Wall Street simply because that is where all of the cool stuff happens. No matter what the dealing room contains, it will always be where the traders will make the money and close the trades. For those who have watched movies like Wall Street or the Big Short and have enjoyed them thoroughly, learn more about where the Wall Street traders play by knowing more about trading floors.
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