What is the Difference Between Electronic Communication Network and Market Maker Indices Trading Account in Indices Trading?
ECN Indices Trading Account vs Maker Indices Trading Account
ECN Indices Trading Accounts
ECN Indices Trading Account stands for Electronic Communication Network, these ECN Indices Trading Account indices brokers are connected to the interbank network directly through an electronic communication network and the indices orders from the ECN Indices Trading Account are placed straight to the electronic network.
The ECN Indices Trading Account will display different orders from different banks. The indices trading quote placed by these ECNs network of banks are direct from the to the interbank network and orders are executed directly to the interbank market once a indices trader trading with this ECN account places an order with their stock indices trading broker.
These ECNs account will charge commissions + spread for every indices trade. For these ECN Indices Trading Account execution method every trade is matched to another in real time over the interbank network - ECN Network.
Market Maker Indices Trading Accounts are indices broker accounts where Market Maker indices brokers have a dealing desk where they can match orders in house without going to the online stock indices market.
Indices Trading orders can also be executed against their traders - meaning the stock indices trading broker can take the opposite side of a indices traders open trades.
This stock indices trading broker can make the decision to either execute a stock indices order that is the opposite of a indices trader's order thus if the indices trader makes a loss the indices broker makes a profit, and if the indices trader makes a profit the indices broker makes a loss.