Abstract: A computer based virtual reality trading system for trading financial products such as commodities and stocks uses a server based system for generating a virtual trading floor to simulate an exchange. Traders use local PC's to direct their individual avatars interactively on the virtual trading floor, using hand and voice signals similar to a non-virtual exchange. This allows an exchange to be de-coupled from its physical geographic location as traders in diverse locations can interact on the virtual trading floor. The system enables accurate tracking for audit of the trade activity and simplified trade clearing, while retaining the dynamics of a non-virtual exchange.