What are ECN's

[mikeyk]

Hello,

Could anyone tell me what ECN's are or what it means. Its something i see mentioned about a lot, but dont really know anything about it except that it might have something to do with US trading or level 2?


Cheers




Michael

 

[darktone]

Hello,

Could anyone tell me what ECN's are or what it means. Its something i see mentioned about a lot, but dont really know anything about it except that it might have something to do with US trading or level 2?


Cheers




Michael

http://www.trade2win.com/boards/glossary.php?s=&ltr=E

 

[bigtimetrader]

ECN = Electronic Communication Network

Basically they are electronic order matching systems. ECN's allow regular traders to act almost like market makers, posting bids & asks which are visiable to the general market. They also allow stock traders to get very fast executions and provide the ability to trade pre & post market hours.