Automated trading                Trading Floor                          

Advantages                       Advantages        
Data entry takes place           Direct contact between     
before execution, thus           traders; traders can see   
error-free price reporting.      what decisions others      
                                 appear to make. 
No need for traders to                              
meet physically, thus            There is a real center of 
no geographical limits.          the market, it is thus   
Immediate position update.       easier to get a global view
                                 of market opinions.
    
Disadvantages                    Disadvantages 
Anonymity of trading:            Time lag between execution and 
who is buying/selling?           recording. 
Sensitivity to telecom/          Recording error potential.
computer breakdown. 

Treaders need to enter           Congested trading pits can set a  
data into a computer             limit to tradeable volume.