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What is the meaning of ECN trading model

2023/2/26 17:56:30  Classification:   Participation: 6  

retail forex trading platform has two basic models, a single rebateinforextrading rebatesinforex platform, one best forex rebate the rebatemeaninginforex platform of the following four conditions, any one does not meet, it means that this brokerage is mostly impersonating ECN platform condition one: in the bestforexrebate order window, in terms of transaction type, the real ECN is different cashback forex the bet against the market maker is the ECN model MT4, and futures stock products trading mechanism is the same ECN mode MT4 transaction type is: market transaction; betting on market maker mode MT4 transaction type is: instant transaction condition two: (the most important) about pending orders trading real ECN mode MT4 pending orders trading can be any pending orders, even between the spread of pending orders without any restrictions (because The real ECN is 100% access to the international interbank market, as long as the market has that mouth price, there is no fear of not giving customers a deal) and the betting market maker company, in the pending transaction, is often given restrictions, such as how many points away from the market price before hanging a single (the purpose is to prevent customers from hanging a single distance too close, resulting in a high rate of scalping; or, to prevent customers from hanging a single within the spread) (The purpose is to prevent the customer from hanging orders within the spread, causing the betting market maker can not profit from the spread hedge) condition three: the real ECN model of quotes, are shouted by the major banks traders, after the ECNs pool bidding system, showing the customer the tradable price, there will be no re-asking phenomenon and the opposite, is the betting market maker MT4, the customer needs to enter the maximum deviation from the allowable price and offer, which is The market maker background to the customer to re-ask one of the basis, the customer in the betting market maker MT4 when placing orders, there will often be a price has changed the news In addition, betting market maker MT4 exists to run the maximum deviation of the transaction price and offer is also clearly one of the evidence of the prohibition of customer scalping condition four: the real ECN model of brokerage, the spread is completely from the results of international interbank bidding, is certainly floating (and the euro-dollar is basically between 0 and 1 point), the company is simply by charging commissions as income betting on market makers platform, they will add their own income to the spread, expanding the original spread, making it fixed, and claim not to charge commissions so fixed spreads platform is also certainly betting on market makers

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