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What is a Trading Floor?

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What is a Trading Floor?

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The trading floor is the place at a stock exchange where the actual trading occurs. This is most often seen during updates on financial news, especially those broadcasted by CNBC and other financial news networks. The trading floor is often a busy and hectic place, though it has become less busy with computer trading applications. The trading floor is often referred to as the pit of a stock exchange because it is where all the heavy work is done. Further, there are usually elevated positions where people can watch the action, thus the trading floor is located on a lower level than most of its surroundings. From that elevated perch, visitors may look over onto the floor and watch the action, at least at some stock exchanges. Though the trading floor once dominated nearly all the action at a stock exchange, it is becoming less and less the center of attention as the world turns to computers to do most of the work. In fact, there could come a day when an actual physical trading floor is r

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