Blackboard Trading
What Is Blackboard Trading?
Blackboard trading alludes to an obsolete practice where exchange trading depended upon handwritten bid and offer prices on blackboards.
How Blackboard Trading Works
Blackboard trading included a difficult cycle by which trading [specialists](/subject matter expert) physically composed bid and offer prices on immense chalkboards that lined the walls of a exchange. Their utilization started to decline in the late nineteenth century as traders embraced the message as a means to follow ticker prices. The rise of automatic quote boards during the 1960s and the requirement for additional efficient methods of dispersing quotes in the end made the blackboard trading obsolete. The sluggish speed of trading required by the utilization of blackboards made it challenging to satisfy need for greater trade volumes.
The approach of electronic trading in the long run tackled the effectiveness problem, making floor trading, and by extension the staff engaged with floor trading like trained professionals and runners, essentially obsolete. The Nasdaq exchange spearheaded computerized trading in 1971, and the greater part of the industry has not thought back since. While a waning number of exchanges keep on depending upon floor trading, electronic options generally exist alongside them and carry the bulk of trading volumes.
From Blackboard to Circuit Board
The monster blackboard that made trading conceivable in the beginning of the New York Stock Exchange likewise led to its epithet, the Big Board.
Subsequent investing advances likewise brought about curios that stay in the dictionary to date, most outstandingly the scattering of quotes by means of transmit. For roughly a century, machines called tickers translated the electronic motivations getting through the message wires into letters and numbers relating to stock quotes. That produced the term ticker symbol, which has itself outlasted the utilization of ticker tape at brokerage firms restless to peruse and answer timely quotes. The ticker tape march, which actually welcomes title sports groups and returning city heroes, took its name from the utilization of old ticker tape tossed out of office windows as confetti.
Quote boards fit for showing current prices electronically supplanted tickers through the 1960s, ultimately giving approach to computerized price data previously delivered by a gadget called a Quotron. The multiplication of Bloomberg terminals made Quotron gadgets obsolete lastly introduced the period of real-time stock quotes delivered by computer.
The rising straightforwardness with which individual investors can obtain real-time stock quotes has produced substantial changes in financial markets. High-frequency trading , day trading, and a scope of strategies that rely on quick reactions to price developments would have been everything except unthinkable in the days when investors expected to counsel the chalk to price a trade.
Highlights
- The present quotes are priced electronically, making the message and blackboard quotes obsolete.
- Blackboard trading is an old fashioned approach to introducing bid and ask prices, written on a blackboard.
- The technology of the message gradually supplanted the utilization of blackboards.
