Question about ECN accounts

Lacanau

Junior member
35 0
I've been spread betting for a while and since learnt its not the best option. I've been looking into getting an ECN account but I had a question that I couldnt quite answer myself:

Since ECN brokers are directly accessing the markets, who is lending you the money when you sell short? The broker? How do they ensure the capital to supply these sorts of deals?


Thanks in advance :cheesy:
 

Shakone

Senior member
2,458 665
You're not trading the real market through an ECN for forex. The broker has some liquidity providers, and you can trade on these quotes, plus other users of that broker can also post trades, and you can trade on these. You have no access to the interbank market.
 
  • Like
Reactions: wackypete2

Lacanau

Junior member
35 0
You're not trading the real market through an ECN for forex. The broker has some liquidity providers, and you can trade on these quotes, plus other users of that broker can also post trades, and you can trade on these. You have no access to the interbank market.

Ah thanks for clearing that up! Who are these liquidity providers? And how does one gain access to the 'true' interbank market?
 
 
AdBlock Detected

We get it, advertisements are annoying!

But it's thanks to our sponsors that access to Trade2Win remains free for all. By viewing our ads you help us pay our bills, so please support the site and disable your AdBlocker.

I've Disabled AdBlock