What is Difference Between Dealing Desk Account and Market Maker Indices Trading Account in Indices Trading?

DD Indices Trading Account vs Market Maker Indices Trading Account

DD Indices Trading Accounts

DD stands for dealing-desk, these DD account indices brokers have a dealing desk execution model where they can match orders & execute indices order in the online stock indices market.

The indices trader trading with a DD account will get a lot of re-quotes.

Dealing Desks will issue indices traders with a lot of order re quotes, meaning indices prices of orders are not real-time and stock indices trading broker can requote a indices trader's order if the stock indices price of the stock indices trading market changes quick enough before the broker's dealing desk places the trading order online or before they match the order in the online stock indices market.

Dealing Desk accounts therefore means that order execution of stock indices orders isn't instant & therefore this execution model might mean that orders executed using a DD Indices Trading Account are not executed as quickly as when compared to an ECN trading account or an STP trading account.

MM Accounts

Market Maker Indices Trading Accounts are indices broker accounts where Market Maker indices brokers have a dealing desk execution model where they can match the orders in house without going to the stock indices market.

Indices Trading orders can also be executed against their traders - meaning the broker can take the opposite side of a traders open trades.

This stock indices trading broker can make the decision to either execute a stock indices order that is the opposite of a indices trader's order thus if the trader makes a loss the broker makes a profit, & if indices trader makes a profit the broker makes a loss.