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

  1. fredz



    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?

  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

  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 This book, although a little out of date (discusses the SuperSOES and SuperMontage as coming events) is a very good introduction to the workings of ECN's & Market Makers.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.,,0471436488|desc|3016,00.html


    This book was also recommended to me: