To deal with the volatility general noise level and frequent.
Trading floor noise.
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Traders buy and sell securities on behalf of clients or on behalf of the financial firm which employs them.
1 an owner of a lot must ensure that all floor space within the lot is covered or otherwise treated to an extent sufficient to prevent the transmission from the floor space of noise likely to disturb the peaceful enjoyment of the owner or occupier of another lot.
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By employing noise removal techniques traders can avoid false signals and get a clearer picture of an overall.
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The signals are the favored form of floor communication especially in the financial futures pits for three main reasons.
The bottom line noise removal is one of the most important aspects of active trading.
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The signals let traders and other floor employees know how much is being bid and asked how many contracts are at stake what the expiration months are the types of orders and the status of the orders.