ECN or "electronic
communications networks" are computerized order matching systems.
When a day trading order to buy or sell a particular stock or security
is sent to an ECN, the order is matched to an equal and opposite
order in less than a second. Until recently, only institutions could
day trade via ECNs.This allowed them to buy and sell stocks outside
regular stock market hours (when most earnings announcements took
place). This was obviously bad news for the small investor, who
had to wait for the market to open. This state of affairs ended
in 97, when Island (who you will have heard of) opened to the public.
The growth in day trading via ECNs has been extreme, taking business
away from more traditional methods. Due to execution speed and transparency,
ECNs have become the weapon of choice for day trading, until the
arrival of spread betting opened up yet another alternative.
The SureFireThing Camarilla Equation for use in day trading is available online from these