how do ECN's work?

Discussion in 'Order Execution' started by lars22, Jan 20, 2006.

  1. lars22


    Till now I've only been trading with a phone broker. The only internet trading that ive done is in Forex. I thought the stock markets for nasdaq, nyse, amex...was from 9:30 to 4 ET.
    Now I read that when I trade online, like with IB, I can trade 24h a day with ECN like smart, arca,island, etc... I dont really get it. Like on IB, when I add msft, I dont see nasdaq, I only see island, arca etc...Does that mean that these exchanges trade with nasdaq, or without nasdaq? Also, how are the volumes calculated. When I check historical volumes, do they include volume trades in ECNs as well? Or say after the market hours, I wanna trade msft with arca and I draw the chart, does the volume only include the arca exchange?
    Also, where can I get historical data for 24h stocks? Every place that I look the data is between 9:30 and 4 ET. Isnt it like VERY important what happens in between during the hours after the market for technical analysis? How can this can be ignored.
    Im a little confused with this 24h ecn thing. Is there like a tutorial or a book about this that I can read or understand better. I tried google, but didnt find much.
    thx in advance
  2. qxr1011


  3. alanm


    ARCA (ECN) is open 04:00-20:00 ET*.
    INET (ECN) (called ISLAND on IB) is open 07:00 to 20:00 ET.
    BRUT (ECN) is open 07:00 to 20:00 ET*.
    BTRADE (ECN) I don't know about.
    SUPERSOES is what IB calls it NASDAQ SuperMontage route (or whatever it's called - I don't trade Naz). Perhaps someone else can comment on the hours, or check the site. This is where you go to see and execute against market-maker's quotes.

    All of these, along with some other minor ECNs, compete together, posting bids and offers during the times they are open, which you can see on most platforms' "Level II" display.

    Using SMART at IB will try to route your order to wherever it can get the best price.

    *Note that, currently, IB orders don't work at ARCA until 04:15 ET. BRUT also doesn't work during their full session, either (the details escape me). Both have been reported.
  4. Fanz


    Does anyone knows, how are the rules of Island, if you want to bust a fill?
    E.g. Bid 28 -Ask 35, Last Price has been 30 and you buy the Ask 35 .
    Is it possible to bust the order? Which % differenz is possible?
  5. promagma


    Because there are so few traders, the afterhours price jumps usually around a lot even from trade to trade .... so the charts aren't pretty and not so good for technical analysis.

    I am wondering too - does ECN volume show up on stock charts?
  6. Fanz


  7. Fanz


    I wonder: I have tried to sell at island BId e.g. 25, Ask 35, last Quote 27, and i can`t get a fill at 25. How is this possible? To much difference to the last traded quote?
  8. alanm


    Sell short or sell? What stock, and exactly when?

    If it was a long sale, unless the stock was halted or your broker rejected the order, it should have executed.
  9. Fanz


    It has been a short after news. But the stock wasn`t halted.
    I have been very surprised, because i want to sell 300 stocks, get no fill, but, in the same moment: I have seen 300 stocks in the ask, 3 USD higher then the current bid(and my limit). Then i have canceled the order, and the lower ask disappeared.
    This happens with IB.
    #10     Feb 1, 2006