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what's the KEY difference between ECN and FXmarketplace?

  • #1
  • First Post: Jun 29, 2008 11:05am Jun 29, 2008 11:05am
except central cleaning ? anything else ?

for ECN , is there any potential that the trader could face a requote popup " the price is changed" as the price offer remove the price as long as the price taker click the trading button ?
  • #2
  • Jun 29, 2008 11:17am Jun 29, 2008 11:17am
and what's the real difference between hotspotfxi & currenex ?
  • #3
  • Jun 29, 2008 12:55pm Jun 29, 2008 12:55pm
Quoting 800
except central cleaning ? anything else ?
FXmarketplace has virtually nil liquidity.

Quote
for ECN , is there any potential that the trader could face a requote popup " the price is changed" as the price offer remove the price as long as the price taker click the trading button ?
I've only heard of this happening on Currenex.

Quote
and what's the real difference between hotspotfxi & currenex ?
HotSpotFXi is a centralized ECN - a communal liquidity pool of dozens of banks & institutions. Currenex is more a front-end platform. It is not centralized, instead there are multiple bank "hubs" (networks) that employ Currenex, each of varying spreads & liquidity. The Currenex software gives the banks a "last look" feature similar to the requote issue you mention above. Spreads can also be padded by client level (seperate tiers).
  • #4
  • Jun 29, 2008 1:18pm Jun 29, 2008 1:18pm
That ECN thing is highly overestimated in my opinion.

At the end of the day, it does not matter if you trade at an ecn or at a market maker. You will always get your money from the broker if you win, and you will alway loose your money if you loose, no matter which technology is behind.

Also, just because it's ECN, it does not make a trader more successful. Nor does ECN trading change the fact that 95 % of the traders loose on the long run
Forex is a losers game.
  • #5
  • Jun 29, 2008 5:13pm Jun 29, 2008 5:13pm
Quoting trader121
That ECN thing is highly overestimated in my opinion.

At the end of the day, it does not matter if you trade at an ecn or at a market maker. You will always get your money from the broker if you win, and you will alway loose your money if you loose, no matter which technology is behind.

Also, just because it's ECN, it does not make a trader more successful. Nor does ECN trading change the fact that 95 % of the traders loose on the long run
It's "lose" (sorry, minor pet peeve, misusage of "loose" seems to have exploded..)

Second of all, why are you bringing up ECN vs DD in this thread? That is not the subject of this thread. Also, that subject has been beaten to death 500 times in 500 other threads, haven't you noticed? Here's a helpful hint: the thread stickied at the top of Broker section, "Market Makers & ECN’s, Is the grass greener?", that's where you need to go if you want to continue that discussion. Lastly, you're wrong, but please keep paying your 3 pip spreads if you feel ECNs don't matter.
  • #6
  • Jun 29, 2008 8:26pm Jun 29, 2008 8:26pm
Quoting Trader KGB
FXmarketplace has virtually nil liquidity.


I've only heard of this happening on Currenex.


HotSpotFXi is a centralized ECN - a communal liquidity pool of dozens of banks & institutions. Currenex is more a front-end platform. It is not centralized, instead there are multiple bank "hubs" (networks) that employ Currenex, each of varying spreads & liquidity. The Currenex software gives the banks a "last look" feature similar to the requote issue you mention above. Spreads can also be padded by client level (seperate tiers).

Hi , thanks.
Does it mean Hotspotfxi's system is a fair place no matter who you are , price taker or price maker . But on currenex , the price maker ( banks ) has privilige to do a requote ?


Then for FXmarketplace's central clearing and ECN's Prime Broker clearing , the difference is just the later's is based on the virtual CREDIT relationship and stabilities between PM, while the former's is backed by CME's clearing center which has a long term history in CME futures' operation .
But what 's the real credit system working at CME's clearing center , it's based on each clearing firm's virtual CREDIT or any cash had been deposited in CME clearing center ?


Thanks a lot for all of your help.


PS:

TO MM and MM fans/supporters,

I have no interest to talk the difference between ECM and MM, so thanks in advance that we could keep MM issue out of this thread..
  • #7
  • Jun 29, 2008 10:34pm Jun 29, 2008 10:34pm
Quoting 800
Hi , thanks.
Does it mean Hotspotfxi's system is a fair place no matter who you are , price taker or price maker . But on currenex , the price maker ( banks ) has privilige to do a requote ?
That's correct with regards to HS FXi. The Currenex requoting is just what I've heard through various channels. I have no idea how widespread it is, or if certain hubs are affected at all. It might be more rumor than reality. I'm sure there are many traders who swear by Currenex and trade yards through it each day. To give it a correct assessment, you'd really have to analyze it on a hub-by-hub basis.


Quote
Then for FXmarketplace's central clearing and ECN's Prime Broker clearing , the difference is just the later's is based on the virtual CREDIT relationship and stabilities between PM, while the former's is backed by CME's clearing center which has a long term history in CME futures' operation .
But what 's the real credit system working at CME's clearing center , it's based on each clearing firm's virtual CREDIT or any cash had been deposited in CME clearing center ?
I'm not familiar with the clearing side of things, sorry.
  • #8
  • Jun 30, 2008 1:23am Jun 30, 2008 1:23am
Quoting Trader KGB
but please keep paying your 3 pip spreads if you feel ECNs don't matter.
Yes, will do. And ECN Trader keep paying the commission, which leads to the same result
Forex is a losers game.
  • #9
  • Jun 30, 2008 1:44am Jun 30, 2008 1:44am
Quoting trader121
Yes, will do. And ECN Trader keep paying the commission, which leads to the same result
Same result huh? Keep dreaming..

http://i32.tinypic.com/xmpxk1.png
  • #10
  • Jun 30, 2008 3:25am Jun 30, 2008 3:25am
"(sorry, minor pet peeve, misusage of "loose" seems to have exploded..)"

oh, Amen to that, and the pity is people who can't spell still expect their written words to be taken seriously. But then, I'm just another pedant pining for days gone by...

E.
Enter Signature
  • #11
  • Jun 30, 2008 1:03pm Jun 30, 2008 1:03pm
trader121,

AFAIK, Oanda is the only DD that offers a .9 pip spread on the EUR/USD (most of the time). It all depends on your trading style. For example, if you are a long-term position trader (ex.: carry trader) the issue of pos/neg swap will overshadow the issue of pip spreads, after rolling over a position for only a few days.




Quoting Trader KGB
Same result huh? Keep dreaming..

http://i32.tinypic.com/xmpxk1.png
  • #12
  • Jun 30, 2008 8:04pm Jun 30, 2008 8:04pm
Quoting fxterrapin
trader121,

AFAIK, Oanda is the only DD that offers a .9 pip spread on the EUR/USD (most of the time). It all depends on your trading style. For example, if you are a long-term position trader (ex.: carry trader) the issue of pos/neg swap will overshadow the issue of pip spreads, after rolling over a position for only a few days.

TO MM and MM fans/supporters,

I have no interest to talk the difference between ECN and MM, so thanks in advance that we could keep MM issue out of this thread..
  • #13
  • Jun 30, 2008 8:25pm Jun 30, 2008 8:25pm
Quoting 800
except central cleaning ? anything else ?

for ECN , is there any potential that the trader could face a requote popup " the price is changed" as the price offer remove the price as long as the price taker click the trading button ?
No requotes on ECNs, but of course slippage on market orders or no fills on limit orders (which is essentially the same as a requote). On Currenex, liquidity providers also have a 'last look' option (can decide to not fill an order when it is routed to them).
  • #14
  • Jun 30, 2008 8:31pm Jun 30, 2008 8:31pm
Quoting shrike
No requotes on ECNs, but of course slippage on market orders or no fills on limit orders (which is essentially the same as a requote). On Currenex, liquidity providers also have a 'last look' option (can decide to not fill an order when it is routed to them).
For market order / limit order , is there any option to set an acceptable range of the slippage ?

For Currenex's "last look" , it's for all of orders on the book or just a privilege of the banks only? and who set the rule on the currenex ( i mean the 1st tier currenex rather than the 2nd tier white-label ) Prime brokers or currenex.com itself?
  • #15
  • Last Post: Jul 1, 2008 5:52am Jul 1, 2008 5:52am
You can always submit a marketable limit order (for example, a buy limit order 2 pips above the ask-price would try to get a fill at the current ask, but will limit your slippage to 2 pips in case the price suddenly moves).
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