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End of Open Outcry Depicted in Film

When many people think about trading, they think about scenes like this.

Chicago Board of Trade Floor

That was how the Chicago Board of Trade used to look. You had people in colorful jackets screaming bids and asks at each other, and that was how trading was done until recently. But technology allowed a change to the system, and recently, the CBOT joined many other exchanges by going to electronic trading.

Here, computers replace the people shouting out buy and sell orders, and the process is quicker, and small traders have just as much of a chance to get their orders completed as big traders. Traders can also see the bid and ask price immediately. It doesn't matter if you're trading one contract or a thousand, with electronic trading, everyone has just as good of a chance of getting their order filled at a price they want.

And what that means is floor traders need to adapt or they will fade away.

A documentary that's soon to be released called Floored will soon be released. Instead of focusing on the high flying trading gurus who are making millions, it focuses on a typical trader on the floor. It looks at how many of them are struggling to adapt to the new world of electronic trading. Much like an autoworker in Detroit who finds out his services are no longer needed, many floor traders not just in Chicago but throughout the world find that electronic trading is killing their jobs.

Floored was highlighted in an article in Barron's and in the Chicago Tribune. The trailer for the movie can be found here.

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