Floor Broker

A floor broker is a licensed individual who executes buy and sell orders on behalf of clients on the trading floor of an exchange, such as the New York Stock Exchange (NYSE). Floor brokers represent their clients' interests, ensuring that orders are executed at the best possible prices. They play a critical role in maintaining market liquidity and efficiency, particularly in traditional open outcry markets, where human interaction supplements electronic trading systems.

Example

A floor broker receives an order from a mutual fund to buy 10,000 shares of a company. The broker goes to the exchange floor, interacts with other traders, and executes the order at the best available price.