A member of an exchange who trades on the floor of the exchange for his own account. In contrast, the floor broker is buying and selling for the accounts of customers and is acting as agent. See: Agency; Floor; Floor Broker
Unlike floor brokers who fill client orders, floor traders buy and sell stocks or commodities for their own accounts on the floor of an exchange. Floor traders don't pay commissions, which means they can make a profit on even small changes in price. But they must still abide by trading rules established by the exchange. One of those rules is that client orders take precedence over floor traders' orders.