The exchange floor is littered with ticker tape, note paper, etc. Only brokers may trade. The highest price ever paid for a seat, at the 1929 crest, was $625,000. Members pay an initiation fee, annual dues, and 1 percent of net commissions from trades made on the floor.


On the exchange floor at any one time are several kinds of brokers, traders, or dealers capable of transacting business. Most numerous is the commission broker. This commission is deducted from the commission your broker charges you. The two-dollar broker may also be called on to execute a limit order—a purchase or sale at a specified price—when the time required for the market to rise or fall to that price is more than the commission broker can spare.

There are also exchange floor traders, who buy and sell exclusively for themselves. These are the freelancers of the brokerage business. Because they pay no commissions, the floor traders can turn themselves a profit on a very narrow margin. By paying close attention to the trends of the market, they are able to move in and out of opportunities as they appear.

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