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Types of Crypto Broker - Types of Crypto Brokers

Straight Through Processing(STP)STP Online Broker, NDD

A directory of various Bitcoin Broker classifications - an explanation of these differing broker types follows below.

ECN - Electronic Communication Network Broker - Types of Bitcoin Brokers

ECN Broker stands for Electronic Communication Network, these ECN bitcoin brokers are connected to the interbank network directly through an electronic communication network & bitcoin orders from the ECN Bitcoin Broker are placed straight to the electronic network. The ECN Broker will display different bitcoin quotes from different liquidity providers. The quotes placed by these ECNs network of liquidity providers are direct from the interbank network and orders are executed directly in the interbank bitcoin market - once a trader trading with an ECN broker places a btcusd order with their crypto currency broker.

These ECN brokers will charge commissions + spread for every bitcoin trade transaction order. For these ECN Broker execution method every bitcoin trade is matched to another in real time over the interbank network - ECN Network.

STP - Straight Through Processing Broker - Types of Bitcoin Brokers

STP Broker stands for Straight Through Processing, the STP bitcoin brokers will send the trader orders direct to their Bitcoin Liquidity Provider, the BTCUSD CryptoCurrency Liquidity Provider is a big bank with deep liquidity required to trade & transact in the interbank net-work.

STP Brokers May Use One or Multiple Bitcoin Liquidity Sources.

Japanese candlestick patterns offer many setups for trades. Each chart form means something different. Common ones include these.

STP Bitcoin Brokers will not charge commissions, but will charge spread on crypto trades. Because traders have access to the interbank markets execution, there's no re-quotes on the bitcoin orders neither is there any bitcoin order waiting for execution, the order execution is instant.

NDD - Non Dealing Desk Broker - Types of Bitcoin Brokers

NDD stand for Non-Dealing Desk bitcoin execution of orders, these NDD brokers don't implement a dealing desk & this makes this type of order execution to have less restrictions as opposed to the Dealing Desk BTCUSD Trade Execution.

NDD Order Execution signifies that trade positions from an online trader's account are transmitted straight to the interbank BTC/USD market. These bitcoin orders are then matched against other trading BTC/USD orders within the interbank exchange by the online broker utilizing the Non-Dealing Desk execution model.

DD - Dealing Desk Broker - Types of Bitcoin Brokers

DD stands for dealing desk. These DD bitcoin brokers have a dealing desk where they match up and execute cryptocurrency orders in the online interbank exchange market.

The bitcoin trader trading with a DD broker will get a lot of requotes.

When utilizing Dealing Desks, Bitcoin traders frequently encounter order requotes. This occurs because the prevailing prices for Bitcoin might not always be instantaneously updated. Should the BTC/USD market price shift abruptly before the broker processes the order online or matches it within the interbank Bitcoin market, a requote may follow.

Dealing Desk bitcoin brokers handle orders themselves. This slows down bitcoin trade fills. Crypto orders through them run slower than with ECN or STP brokers.

Market Maker Broker - Types of Bitcoin Brokers

Market Makers are bitcoin sellers that can match bitcoin orders themselves, not going to the online bank market.

Bitcoin orders can also be carried out against their bitcoin traders, which means the broker can take the in the opposite market trend side of a bitcoin trader's open cryptocurrency transactions. This bitcoin broker can choose to carry out a bitcoin order that is in the opposing market direction of a bitcoin trader's order hence if the online trader suffers a loss the online broker gains profit: should the trader earn profit, the broker incurs loss.

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