How we traded 20 years ago

So when I first started trading, online dealing was just becoming a thing.

Most traders were calling orders in via phone.

In fact, when you opened an account you were issued with a dealing guide.

How to trade via the telephone

It had do’s and don’t of what to say:

• Don’t bother the dealers looking for quotes
• Don’t reveal your intentions before asking for a quote
• Avoid ambiguous terms like “close there” and “I’ll take it”

For a new 20–year-old trader, calling a dealer in the city was pretty intimidating. The lingo, the speed the abrupt nature.

So when online dealing came along it was a game-changer…

But when I say ‘online dealing’ I mean, technically that’s true, but it’s nothing like we have now.

It was a glorified chat system.

You clicked the buy button and it sent a pre-populated message that looked something like this:

“I’d like to buy the FTSE at £10pp please”

Then after a few minutes, the dealer would type back

“Certainly sir, the price is 6196 – 6204”

You would then type BUY

But if you were a few seconds too late the dealer would tell you the price was no longer valid and requote you.

Imagine this in a fast market…

Total joke.

Plus the spreads were insane.

8 pt spread on the FTSE in 2001 when it was trading at 6,000 and the range was probably 40 pts!