Which methods was used in Exchange trading floors before computers?

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The first stock exchange session took place on April 16, 1991, with only five companies present. It was the first day marking the beginning of a new history of the Warsaw Stock Exchange. Source: https://maklerska.pl/blog/historia-gieldy-papierow-wartosciowych-w-warszawie/

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Voice trading
Auction system
Telephone
Written orders
Shouting

Before the emergence of computers and electronic stock trading platforms, stock exchanges were places where transactions took place in financial markets. Trading on stock exchanges was based on physical meetings and interactions between brokers, traders, and clients. Below are some of the main methods and practices that were used on traditional stock exchanges: Open Outcry: One of the most characteristic elements of stock exchanges was the use of a method known as "open outcry" or "vocal trading". Brokers and traders, dressed in distinctive outfits, stood on the trading floor and used specific gestures and shouts to communicate with each other and make transactions. Each exchange had its own unique gestures and phrases that were used to convey information about prices and quantities. Brokerage Rings: Some floor-based exchanges had special teams of brokers who specialized in specific financial instruments. These brokers had better access to market information and were responsible for facilitating transactions among other brokers. Trading Posts: Stock exchanges had boards or screens on which current price quotes and transaction volumes were displayed. Brokers could monitor this information to make investment decisions. Specialists: Some exchanges had specialists (market makers) who were responsible for maintaining market liquidity for certain financial instruments. Specialists were obligated to execute transactions on these instruments and provide competitive bid and ask prices. Cell Phones and Fax Machines: Although not computers, cell phones and fax machines were used to communicate information and orders between brokers and clients on the trading floor. Paper Trading: Transactions were often recorded on paper in the form of orders and confirmations, and some of them had to be physically delivered to the respective brokerage firms and exchanges. Hand Signals and Levers: Brokers could use hand signals (plastic balls with numbers) and levers to indicate buy or sell orders. Delivery of Letters and Various Documents: Important documents, such as contracts and transaction confirmations, were physically delivered between parties using couriers or delivery services. As computer technology developed and evolved, traditional stock exchanges began to give way to electronic trading platforms, which enable faster and more automated transaction execution. As a result, the way trading takes place in financial markets has changed, although some floor-based exchanges still exist and are used, albeit to a much lesser extent than before.

On stock exchange floors before the emergence of computers, trading in stocks and other financial instruments was conducted in a more traditional and manual way. Below are a few main methods and practices used on stock exchange floors before the computer era: - Voice trading: This was the basic method of trading on the stock exchange floor. Brokers representing various investors would make transactions by shouting their offers and orders on the trading floor. It was from these shouts and gestures that the popular images of stock exchange floors, where brokers communicated in a theatrical manner, originated. - Transaction cards: Brokers used transaction cards to record the details of each transaction, such as stock symbol, quantity, price, etc. These cards were then passed on to back-office offices for settlement. - Runners and clerks: "Runners" and "clerks" also worked on stock exchange floors. Runners would relay client orders to brokers on the trading floor, while clerks would deliver physical documents and orders from one brokerage office to another. - Trading clocks: Special clocks were used on the trading floors to control the duration of trading sessions. These clocks determined how much time was left until the end of the session and helped manage time during the frenzy of trading. - Paper reports and confirmations: Transactions were documented using paper reports and confirmations. Brokers and investors would receive physical documents confirming the execution of transactions. - "Stop" and "limit" orders: Although not computerized, "stop" and "limit" orders were available on stock exchange floors. Brokers had to monitor and execute these orders manually. With the development of technology and the emergence of computers, many of these traditional methods have been replaced by electronic trading systems. Trading on the trading floors has become more automated, which has accelerated and streamlined exchange processes and reduced the significance of manual voice trading.