How To Know Real And Fake ECN Broker | Best ECN Broker 2020
Unlike an ECN type model, a deal desk doesn’t have any banks in the quote to the customer. They are the quote.
They can quote wherever they want (within reason), as long as they are executing customers with stops and limits at the bids and offers that they hit.
Most deal desks usually observe one or more direct access feeds for cross reference. The general idea behind a deal desk operation is that they have equal buy and sell orders during each shift across their book, and to a large extent, they capture the spread or better.
But if a chunk of customers start buying Cable and the MM feel like they are getting too short, they need to buy it themselves. They do this by tapping into their suppliers/bank feeds. These are the prices they watch that inform them where the approx true market quote is, and they use this knowledge to move their own quote and execute customer trades.
Say they have a small selection of bank feeds that shows the Cable at 2.0640by 2.0642 & change.
They have their current quote sitting at 2.0640 by 2.0644. They see on their grid that a clutch of customers have stop orders to sell at 2.0637.
They can move their quote down to 2.0637 and trigger those sell orders, which they buy. They know they can hit their bank feeds at 2.0640 and make 3 easy, quick pips. This is the task of the deal desk trader. He/they decide whether to hit the 2.0640 bank bid or hold the long position for prices to move up.
If they then move their quote up a couple of pips, some customers think it’s going up and they buy at the offer, which means they are selling at 2.0644, making good money. But the whole time, they had �flat to even� risk because they could hit the bank separately.
You, the customer don’t see their suppliers feed on a deal desk system. And in fact, the real market never touched 2.0637 at all. Good hey?
This is where the major difference lies regards ECN v/s Deal Desk execution. You will directly hit bids, offers & actually trade inside the 2 from a variety of avenues (Banks & competing traders) within the price engine of an ECN. Whereas executing through a traditional FX broker, you’re being shaded or shielded from the live price mechanism – therefore trading in via a middleman.
Fact is, some trade blocks will be �warehoused� by the broker, whilst other positions will be instantly cleared. But as the vast percentage of retail trades are below ‘normal market sized’ amounts (i.e. below the minimum trade size threshold to clear) they are simply absorbed.
The broker isn�t necessarily always trading against you, the customer. Most of the time they are simply managing their order flows & percentage book so that they�re working & operating within their business model structure. Of course they run stops occasionally, but so does the rest of the market. Sometimes it’s more in fear than greed.
You also have to appreciate most of the larger shops & firms see, or certainly have access/information to, the proper flows from hedge funds & CTA�s etc, in decent directional size. They’re often more busy watching & assessing that business than anything else.
44 comments
Hi there, I enjoy reading through your post.
I like to write a little comment to support you.
For newest news you have to visit internet and on internet I found this
website as a finest website for latest updates.
Great goods from you, man. I’ve have in mind your stuff prior
to and you are simply extremely wonderful. I really like what you’ve obtained here, really like what you’re saying and
the way in which during which you say it. You make it enjoyable and you
still take care of to keep it sensible. I cant wait
to read far more from you. This is really a great
website.
… [Trackback]
[…] Find More to that Topic: earnbiga.com/how-to-know-real-and-fake-ecn-broker-best-ecn-broker-2020/ […]
… [Trackback]
[…] Find More to that Topic: earnbiga.com/how-to-know-real-and-fake-ecn-broker-best-ecn-broker-2020/ […]
… [Trackback]
[…] Read More on on that Topic: earnbiga.com/how-to-know-real-and-fake-ecn-broker-best-ecn-broker-2020/ […]
… [Trackback]
[…] Read More to that Topic: earnbiga.com/how-to-know-real-and-fake-ecn-broker-best-ecn-broker-2020/ […]
… [Trackback]
[…] Find More on on that Topic: earnbiga.com/how-to-know-real-and-fake-ecn-broker-best-ecn-broker-2020/ […]
… [Trackback]
[…] Info to that Topic: earnbiga.com/how-to-know-real-and-fake-ecn-broker-best-ecn-broker-2020/ […]
… [Trackback]
[…] Read More Info here to that Topic: earnbiga.com/how-to-know-real-and-fake-ecn-broker-best-ecn-broker-2020/ […]
… [Trackback]
[…] Read More to that Topic: earnbiga.com/how-to-know-real-and-fake-ecn-broker-best-ecn-broker-2020/ […]
… [Trackback]
[…] Read More on that Topic: earnbiga.com/how-to-know-real-and-fake-ecn-broker-best-ecn-broker-2020/ […]
… [Trackback]
[…] Read More Information here on that Topic: earnbiga.com/how-to-know-real-and-fake-ecn-broker-best-ecn-broker-2020/ […]
… [Trackback]
[…] Read More here to that Topic: earnbiga.com/how-to-know-real-and-fake-ecn-broker-best-ecn-broker-2020/ […]
… [Trackback]
[…] Info to that Topic: earnbiga.com/how-to-know-real-and-fake-ecn-broker-best-ecn-broker-2020/ […]
… [Trackback]
[…] Find More to that Topic: earnbiga.com/how-to-know-real-and-fake-ecn-broker-best-ecn-broker-2020/ […]
… [Trackback]
[…] Read More Information here on that Topic: earnbiga.com/how-to-know-real-and-fake-ecn-broker-best-ecn-broker-2020/ […]
… [Trackback]
[…] Find More to that Topic: earnbiga.com/how-to-know-real-and-fake-ecn-broker-best-ecn-broker-2020/ […]
… [Trackback]
[…] There you will find 1321 more Info to that Topic: earnbiga.com/how-to-know-real-and-fake-ecn-broker-best-ecn-broker-2020/ […]
… [Trackback]
[…] Info to that Topic: earnbiga.com/how-to-know-real-and-fake-ecn-broker-best-ecn-broker-2020/ […]
… [Trackback]
[…] Find More here to that Topic: earnbiga.com/how-to-know-real-and-fake-ecn-broker-best-ecn-broker-2020/ […]
… [Trackback]
[…] Info on that Topic: earnbiga.com/how-to-know-real-and-fake-ecn-broker-best-ecn-broker-2020/ […]
… [Trackback]
[…] Information on that Topic: earnbiga.com/how-to-know-real-and-fake-ecn-broker-best-ecn-broker-2020/ […]
… [Trackback]
[…] Information on that Topic: earnbiga.com/how-to-know-real-and-fake-ecn-broker-best-ecn-broker-2020/ […]
… [Trackback]
[…] Here you can find 97214 more Information to that Topic: earnbiga.com/how-to-know-real-and-fake-ecn-broker-best-ecn-broker-2020/ […]
… [Trackback]
[…] There you can find 34592 more Info on that Topic: earnbiga.com/how-to-know-real-and-fake-ecn-broker-best-ecn-broker-2020/ […]
… [Trackback]
[…] Find More to that Topic: earnbiga.com/how-to-know-real-and-fake-ecn-broker-best-ecn-broker-2020/ […]
… [Trackback]
[…] Information to that Topic: earnbiga.com/how-to-know-real-and-fake-ecn-broker-best-ecn-broker-2020/ […]
… [Trackback]
[…] Find More Information here to that Topic: earnbiga.com/how-to-know-real-and-fake-ecn-broker-best-ecn-broker-2020/ […]
… [Trackback]
[…] There you can find 56030 additional Information on that Topic: earnbiga.com/how-to-know-real-and-fake-ecn-broker-best-ecn-broker-2020/ […]
… [Trackback]
[…] There you will find 90026 more Information to that Topic: earnbiga.com/how-to-know-real-and-fake-ecn-broker-best-ecn-broker-2020/ […]
… [Trackback]
[…] Info to that Topic: earnbiga.com/how-to-know-real-and-fake-ecn-broker-best-ecn-broker-2020/ […]
… [Trackback]
[…] Here you will find 33786 additional Info to that Topic: earnbiga.com/how-to-know-real-and-fake-ecn-broker-best-ecn-broker-2020/ […]
… [Trackback]
[…] Info on that Topic: earnbiga.com/how-to-know-real-and-fake-ecn-broker-best-ecn-broker-2020/ […]
… [Trackback]
[…] Find More on to that Topic: earnbiga.com/how-to-know-real-and-fake-ecn-broker-best-ecn-broker-2020/ […]
… [Trackback]
[…] There you can find 27914 additional Info on that Topic: earnbiga.com/how-to-know-real-and-fake-ecn-broker-best-ecn-broker-2020/ […]
… [Trackback]
[…] Here you will find 46314 additional Info to that Topic: earnbiga.com/how-to-know-real-and-fake-ecn-broker-best-ecn-broker-2020/ […]
… [Trackback]
[…] Info to that Topic: earnbiga.com/how-to-know-real-and-fake-ecn-broker-best-ecn-broker-2020/ […]
… [Trackback]
[…] Find More here to that Topic: earnbiga.com/how-to-know-real-and-fake-ecn-broker-best-ecn-broker-2020/ […]
… [Trackback]
[…] Info on that Topic: earnbiga.com/how-to-know-real-and-fake-ecn-broker-best-ecn-broker-2020/ […]
… [Trackback]
[…] Read More here to that Topic: earnbiga.com/how-to-know-real-and-fake-ecn-broker-best-ecn-broker-2020/ […]
… [Trackback]
[…] There you can find 94710 more Information on that Topic: earnbiga.com/how-to-know-real-and-fake-ecn-broker-best-ecn-broker-2020/ […]
… [Trackback]
[…] Find More here to that Topic: earnbiga.com/how-to-know-real-and-fake-ecn-broker-best-ecn-broker-2020/ […]
… [Trackback]
[…] Find More on to that Topic: earnbiga.com/how-to-know-real-and-fake-ecn-broker-best-ecn-broker-2020/ […]