3 thoughts on “What is the difference between ECN, STP and MM in foreign exchange margin transactions?”
Elias
I. u003C/b> Noun explanation should do a good job of foreign exchange transactions. In addition to the quality of the investor itself, the good or bad of the brokers also played a very important role. Now I will introduce the category of the broker of the foreign exchange deposit: 1, the full name of the ECN platform mode Network (electronic communication network), adopts a matching transaction model, directly provides bidding by a number of top banks in the world, suitable for small banks, institutions, hedge funds and high -end foreign exchange traders. 2. The full name of the MM platform mode MARKET MAKER (a single city merchant), adopts a protocol transaction model, and uses the order to make orders into the international market through the trading room or electronic network system. The platform operation is simple and easy to understand, suitable for most ordinary foreign exchange traders. (The foreign exchange margin broker we usually contact is to adopt this method of transaction.) II, ECN topic ecn is an electronic trading network. The traders are directly hung on this network. All traders on this ECN are bidding, so the price on ECN is a real market price. ECN operators generally do not participate in transactions and only collect transaction commissions. They do not modify the points poorly, and they do not manually modify data to trigger stop loss. The role they play is only a transmitter in the market price. Big banks above the home (customers and banks seem to be a water in a large pond). These banks provide market liquidity, so the transaction has no upper limit. ECN's main currency is usually a point difference or no point, and sometimes the difference is negative. In addition, they allow the price limit between the point difference to the point of the minimum to 1/10. So they will provide customers with better services as much as possible. At present, the best ECN for Chinese services includes the MBTF platform for Golden Qi Foreign Exchange Agency, and the two platforms of Brokers. The MBTF of Jinqi Foreign Exchange is the minimum of 400 US dollars in account opening funds. The speed is fast. It is a bit professional on the platform. The platform of Brokers is more professional, with a minimum account opening capital of 10,000 US dollars, targeting higher -end investors. Third, MM's account classification management mechanism A represents Rookies, novice, customers who lose money. The lists of these customers will basically not enter the market, but "trading" in House, which is actually a gambling between customers and customers. Of course, the money lost by Class A customers enters the pocket of the broker. Category B representative Veteran, veteran, stable and profitable customers. The lists of these customers enter the market and manually operate by the Dealer of the economy. The broker earns Marked-Spread, which has been adjusted. Because it is manual, the transaction conditions and speed of Class B customers are not as good as Class A customers, and Requote or cannot be traded. 4. SWOT analysis The advantages of transaction through the ECN mode through the MM mode: The trading platform usually provides free chart software and news. Some cities make trading platforms very humane. Compared with the currency price on the electronic communications network, the currency price provided by the marketing merchants has a smaller fluctuation, but this may be a disadvantage for ultra -short -term traders. Advantages: It can usually get better buying and selling prices, because these are obtained from various channels. Sometimes it can be traded at a small or zero point. ECN will not be your opponent, because they will transfer your single to banks or other customers. The volatility of the price will be greater, which is more good for ultra -short -term traders. Disadvantages: Because the businessmen may be the cube of your transaction, they can formulate and benefit obviously have the rules for implementation of the order. Municipal merchants are likely to manipulate the price of currency to reach the customer's stop loss point, or prevent customers from achieving expected profits. The release of news data often brings a lot of liquidity. Merchants are likely to freeze their display boards and pricing systems when the market fluctuates. Disadvantages: They basically do not provide integrated charts and news. Their trading platform is not very humane. Due to the difference between the difference between the points between the sale and the price, it will be difficult to formulate the stop loss point.
ECN = Network = Electronic Communication Network, which is the transaction platform of electron instant transaction information stp = straight through system = direct processing system MM = Market Maker (Rule) = The way to make a market business system is a way of foreign exchange transactions.
I. u003C/b> Noun explanation should do a good job of foreign exchange transactions. In addition to the quality of the investor itself, the good or bad of the brokers also played a very important role. Now I will introduce the category of the broker of the foreign exchange deposit:
1, the full name of the ECN platform mode Network (electronic communication network), adopts a matching transaction model, directly provides bidding by a number of top banks in the world, suitable for small banks, institutions, hedge funds and high -end foreign exchange traders. 2. The full name of the MM platform mode MARKET MAKER (a single city merchant), adopts a protocol transaction model, and uses the order to make orders into the international market through the trading room or electronic network system. The platform operation is simple and easy to understand, suitable for most ordinary foreign exchange traders. (The foreign exchange margin broker we usually contact is to adopt this method of transaction.) II, ECN topic
ecn is an electronic trading network. The traders are directly hung on this network. All traders on this ECN are bidding, so the price on ECN is a real market price. ECN operators generally do not participate in transactions and only collect transaction commissions. They do not modify the points poorly, and they do not manually modify data to trigger stop loss. The role they play is only a transmitter in the market price. Big banks above the home (customers and banks seem to be a water in a large pond). These banks provide market liquidity, so the transaction has no upper limit. ECN's main currency is usually a point difference or no point, and sometimes the difference is negative. In addition, they allow the price limit between the point difference to the point of the minimum to 1/10. So they will provide customers with better services as much as possible. At present, the best ECN for Chinese services includes the MBTF platform for Golden Qi Foreign Exchange Agency, and the two platforms of Brokers. The MBTF of Jinqi Foreign Exchange is the minimum of 400 US dollars in account opening funds. The speed is fast. It is a bit professional on the platform. The platform of Brokers is more professional, with a minimum account opening capital of 10,000 US dollars, targeting higher -end investors. Third, MM's account classification management mechanism A represents Rookies, novice, customers who lose money. The lists of these customers will basically not enter the market, but "trading" in House, which is actually a gambling between customers and customers. Of course, the money lost by Class A customers enters the pocket of the broker. Category B representative Veteran, veteran, stable and profitable customers. The lists of these customers enter the market and manually operate by the Dealer of the economy. The broker earns Marked-Spread, which has been adjusted. Because it is manual, the transaction conditions and speed of Class B customers are not as good as Class A customers, and Requote or cannot be traded. 4. SWOT analysis The advantages of transaction through the ECN mode through the MM mode: The trading platform usually provides free chart software and news. Some cities make trading platforms very humane. Compared with the currency price on the electronic communications network, the currency price provided by the marketing merchants has a smaller fluctuation, but this may be a disadvantage for ultra -short -term traders. Advantages: It can usually get better buying and selling prices, because these are obtained from various channels. Sometimes it can be traded at a small or zero point. ECN will not be your opponent, because they will transfer your single to banks or other customers. The volatility of the price will be greater, which is more good for ultra -short -term traders. Disadvantages: Because the businessmen may be the cube of your transaction, they can formulate and benefit obviously have the rules for implementation of the order. Municipal merchants are likely to manipulate the price of currency to reach the customer's stop loss point, or prevent customers from achieving expected profits. The release of news data often brings a lot of liquidity. Merchants are likely to freeze their display boards and pricing systems when the market fluctuates. Disadvantages: They basically do not provide integrated charts and news. Their trading platform is not very humane. Due to the difference between the difference between the points between the sale and the price, it will be difficult to formulate the stop loss point.
ECN = Network = Electronic Communication Network, which is the transaction platform of electron instant transaction information stp = straight through system = direct processing system MM = Market Maker (Rule) = The way to make a market business system is a way of foreign exchange transactions.
I haven't seen ECN and MM, STP means stock