ECN-marketmaker

Discussion in 'Trading' started by fredz, Jan 20, 2003.

  1. fredz

    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
     
  2. 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


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 This book, although a little out of date (discusses the SuperSOES and SuperMontage as coming events) is a very good introduction to the workings of ECN's & Market Makers.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

    [​IMG]

    This book was also recommended to me:

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

    [​IMG]