Trader's Glossary

ECN (Electronic Communication Network)

Electronic Communication Networks allow traders to receive the best bid and ask prices when trading by aggregating prices from a number of liquidity providers and always offering the best two. ECN orders are routed straight through to the interbank network, completely anonymously, without any intervention from a dealing desk. When trading over an ECN network a trader may receive bid and ask prices from different providers if these are the most competitive on the market.