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What is electric communication network?
Brokers like these provide and display real-time order book information, such as processed orders and quotes from the interbank market. In order to increase market transparency, several ECN brokers provide information to all participants in the forex market. They charge a fee on every traded volume to make money from dealing with traders. ECN brokers can also be used by traders to complete all of their transactions in the interbank market. ECNs link big brokerages and individual traders, allowing them to trade directly with one another without the need for an intermediary. ECNs must register as broker-traders with the Securities and Exchange Commission (SEC) in the United States. ECNs are computer-based systems that effectively match and execute orders by displaying the best available bid and ask prices from various market participants. They are utilized for after-hours trading and foreign currency trading as well as for trading on major exchanges during market hours. An ECN produces money by collecting a charge for each transaction to satisfy financial commitments, and is classified like an alternative trading system (ATS) by the SEC. It aims to eliminate the involvement of a third party in executing orders made by an exchange market maker or an over-the-counter (OTC) market maker, allowing such orders to be executed wholly or partially. Limit orders are often made using ECNs, which are especially important for securely trading after hours due to the fluctuating influence that may have on a stock's price.

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