Listen to a Business English Dialogue About On floor order
Aubrey: Hi Carl, have you heard of an “on floor order” in finance?
Carl: Yes, I have. An on floor order is a type of order placed by a trader directly on the trading floor of an exchange, typically executed by a floor broker.
Aubrey: That’s correct. How are on floor orders different from other types of orders?
Carl: On floor orders differ from electronic orders placed through trading platforms because they are physically handed to a floor broker who then executes the trade on the exchange floor.
Aubrey: I see. What are some advantages of using on floor orders?
Carl: One advantage is that on floor orders can provide faster execution and potentially better prices, as floor brokers have access to real-time market information and can execute trades quickly based on market conditions.
Aubrey: That makes sense. Are there any disadvantages to using on floor orders?
Carl: One disadvantage is that on floor orders may involve higher costs or fees compared to electronic orders, as traders may need to pay additional commissions or fees for the services of floor brokers.
Aubrey: I understand. Can you give an example of when someone might use an on floor order?
Carl: Sure, someone who values speed and personal interaction may use an on floor order when executing large or complex trades, where getting the best possible price quickly is important.
Aubrey: Thanks for explaining, Carl. On floor orders seem like an interesting aspect of trading on exchanges.
Carl: Absolutely, Aubrey. They offer traders another option for executing trades and accessing liquidity in the market, depending on their specific trading preferences and objectives.
