Why do many successful floor traders fail to make the transition to screen trading?

November 11th, 2018, 07:00 PM

wldman

I get it. I would listen to what crowd the noise was in, and look across the floor to see who was on what phone and how they were acting. Often when I'd look at our markets I could anticipate what might be coming and clear our book. Sometimes the DPM would tick our vol and sometimes the wouldn't as they had a position or a view that came from somewhere else.

Most of the forum does not understand what that means, so in the context of front running I have to just let it go.

The failure here IMO though is to seize on an opportunity to try to get better by asking questions, not throwing shade on people or a topic that almost nobody here understands.

Your comments are correct and consistent. Someone was implying that floor traders lost their edge (theft) because they could not front run. That is bullshit from someone that has no idea. Past that it further underscores why some guys don't bother to post anymore....there is nothing to gain from the discourse.

Thanks for the clarification. I am guilty of making the implication that floor traders lost their edge because they could not front-run. It was a lazy way to think by jumping to conclusion. Your post tells me that most of their edge is legitimate by taking advantage of the working environment fairly. Some front-running may happen but it is safe to assume it is not a lot, otherwise the regulators will come in which they did not.

November 11th, 2018, 07:02 PM

Here is what I gather. Floor traders could use their eyes and ears on the surroundings to get an information advantage. On the screen, this information advantage is gone. Everyone has equal access to the screen information if they are willing to pay for market data.

November 12th, 2018, 04:38 AM

wldman

Your comments are correct and consistent. Someone was implying that floor traders lost their edge (theft) because they could not front run. That is bullshit from someone that has no idea. Past that it further underscores why some guys don't bother to post anymore....there is nothing to gain from the discourse.

hlpm

Thanks for the clarification. I am guilty of making the implication that floor traders lost their edge because they could not front-run. It was a lazy way to think by jumping to conclusion.

You really don't need to apologise for having your own opinion on a public forum, especially not when you were actually just quoting somebody else's opinion.
Everybody has different levels of experience on varying topics and the vast majority of people you will find on this site are pretty friendly and accommodating.

November 13th, 2018, 11:17 AM

I think for many Floor Traders it boiled down to relationships. They did business everyday and they did it with people/institutions they had relationships with. These relationships were a huge part of their edge.

I have a great relationship with my i7-5930K overclocked to 4.3GHz.....lol (soon-ish I'll have a relationship with i9-7980XE)

My point here is that in front of a screen is very different. Takes a different type of person. People skills don't really factor into it the same way if at all. (Saying it politely, here.)

Ron

November 19th, 2018, 07:52 PM

where they were front running paper or the other floor traders where telling them what orders they were working , they knew something be for the public did . that still happens to day . if UBS is working a big order for a huge fund ..and that gets sniffed out . there will be front running even to day.

Why do many successful floor traders fail to make the transition to screen trading?

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Why do many successful floor traders fail to make the transition to screen trading?