Commodities Brokers

Nearly all exchanges now use electronic systems to automate trades, and many use them exclusively. In these settings, the trading floor is more like a typical office setting, with brokers working at computers conducting research and making trades.

Brokers and traders do not have a nine-to-five job. While commodities trading on the exchange generally takes place from 9:00 A.M. to 1:00 P.M., international trading runs from 2:45 P.M. to 6:50 A.M. Many commodities brokers work 40 or more hours per week.

In the rough and tumble world of the futures exchange, emotions run high as people often win or lose six- or seven-figure amounts within hours.

At exchanges that still use the "open outcry" system, the trading floor is noisy and chaotic. Every broker must be an auctioneer, yelling out his own price bids for purchases and sales. The highest bid wins and silences all the others. When a broker's primal scream is not heard, bids and offers can also be communicated with hand signals. Brokers stand for most of the day, often in the same place, so that traders interested in their commodity can locate them easily. Each broker wears a distinctly colored jacket with a prominent identification badge. The letter on the badge identifies the broker and appears on the paperwork relating to the trade. Members of the exchange and employees of member firms wear red jackets. Some brokers and traders also have uniquely patterned jackets to further increase their visibility in the pit.