The difference between ECN and MM forex trading platform

forexbrokerrebateprogram 2023/2/26 5:10:28 4Views

Recently because many people ask about th forex broker rebate program issue, in fact, Baidu has this introduction everywhere here I briefly introduce: The current foreign exchange margin electronic cashback forex panel mainly has two models, one is called ECN trading model, mainly to serve institutional customers ECNs full English name is ( electroniccommunications network, electronic communications network); another MM trading model, specifically for retail customers ECN way of traders: they directly to the customers single to the international autorebateforex to trade, they just charge the cost of delivery forexbrokerrebateprogram service, customers either earn or lose, and they have no relationship They do is to provide customers with a trading platform, so customers no matter what single, as long as the international market at the time someone is willing to take, it will immediately deal, there will be no human intervention, but also casual people do ultra-short term and their spreads are not fixed, but a familiar with the market will understand, when the market is active spreads are very small, and even negative spreads appear, but when the However, when the market is very thin, because people have little interest in trading, then the spreads can vary greatly, which is the real market price so to speak, ECN platform companies, they play the role of a mere transmitter of market prices to pass transactions directly to counterparty customers or more than 12 large banks (customers and banks are like water in a large pool), these banks provide market Liquidity, so there is no upper limit to trading their major currency pairs is usually 1 spread or no spread, sometimes the spread is negative they only serve institutional investors, the amount of money to open an account are more than a few million dollars, such as national central banks, hedge funds, etc. MM platform company :Their offer is the same as the international foreign exchange market offer, but not the actual customers single to the international market to trade, but within their companys customers directly after the transaction, the excess trading orders, by the company to undertake with the customer bet, and not through the real foreign exchange market flow that is to say, investors are playing with the company if it is directly with the company on the single customer to make money, it means that the company is losing money in the transaction, may be subject to human intervention Now some MM platform to consider the risk, it is with some Some MM platforms now consider the risk of establishing agreements with some large banks, the platforms trading orders through the bank to the market, basically take the banks offer, belong to this kind of belong to a relatively safe and compliant platform However, some varieties are not handed to the market, different platforms have different methods, here I can not say, say too clearly, and some platforms have opinions on me
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