ECN-marketmaker

[fredz]

Hi,

Probably a "newbie" question, but still. I have read a few books and still don't get the difference between a market maker and an ECN. Is an ECN (sometimes?) a market maker, or the other way around? Why would a daytrader use a market maker at all?

Thanks

 

[traderfut2000]

ECN electronic communication network, is a net work where you can place your orders diretly o the market. you can place bids or asks for a certain stock.

The Market makers are not a market they usually work for a financial institution and they have the obligation to provide liquidity on the markets.

have a look at www.isld.com

Quote from fredz:

Hi,

Probably a "newbie" question, but still. I have read a few books and still don't get the difference between a market maker and an ECN. Is an ECN (sometimes?) a market maker, or the other way around? Why would a daytrader use a market maker at all?

Thanks

 

[tatertrader]

This book, although a little out of date (discusses the SuperSOES and SuperMontage as coming events) is a very good introduction to the workings of ECN's & Market Makers.

Do NOT trade until you understand how these function. You might as well be writing checks directly from your trading account to the market.



http://www.wiley.com/cda/product/0,,0471436488|desc|3016,00.html

This book was also recommended to me:

http://www.amazon.com/exec/obidos/t...8261-8274423?v=glance&s=books#product-details