Electronic Communication Network (ECN)

For a small fee, traders can plug into a network to trade stocks. Think of it as Facebook for stock traders. Only with less nudity and political ranting...and fewer photographs of babies and freshly cooked meat.

Generally speaking, ECNs are “off market.” That is, they aren’t part of an established trading system, like the New York Stock Exchange, or NASDAQ, or one of the other blessed exchanges. They connect market makers directly to third parties, allowing them to trade to their heart’s content.

There aren’t a lot of actual, physical hands at work here. Most of the limit orders are matched electronically. The network charges its fee, the transaction is processed, and life moves on. So it’s 2 am on a Saturday, and Joe, who likes to trade in his underwear, is just dying to sell 100 shares of Coke to Betty, who likes to trade while head-banging to Led Zep, who likes to trade with Achmed...who’s saving money for an air conditioner.

So...this is perfect for anyone who wants to become active in the trading of stocks, but hates any kind of physical human interaction.

Don’t worry. The Robot Rebellion will soon be upon us.