Question about ECN accounts

[Lacanau]

I've been spread betting for a while and since learnt its not the best option. I've been looking into getting an ECN account but I had a question that I couldnt quite answer myself:

Since ECN brokers are directly accessing the markets, who is lending you the money when you sell short? The broker? How do they ensure the capital to supply these sorts of deals?


Thanks in advance :cheesy:

 

[Shakone]

You're not trading the real market through an ECN for forex. The broker has some liquidity providers, and you can trade on these quotes, plus other users of that broker can also post trades, and you can trade on these. You have no access to the interbank market.

 

[Lacanau]

You're not trading the real market through an ECN for forex. The broker has some liquidity providers, and you can trade on these quotes, plus other users of that broker can also post trades, and you can trade on these. You have no access to the interbank market.

Ah thanks for clearing that up! Who are these liquidity providers? And how does one gain access to the 'true' interbank market?

 

[rsh01]

Ah thanks for clearing that up! Who are these liquidity providers? And how does one gain access to the 'true' interbank market?

read this...
FX Market Participants