Smart Order Routing (SOR)

What it does

The routing engine evaluates available execution venues at the moment an order is submitted. It analyzes orderbook depth, available size at each level, expected slippage, and fill reliability to determine where the trade should be executed. Instead of selecting the lowest displayed price, the system estimates how the order will interact with liquidity and chooses the venue expected to produce the closest final position to the requested exposure.

Why it matters

Visible pricing alone does not guarantee good execution. Thin orderbooks can cause partial fills or significant price movement during execution. Traders selecting markets manually often base decisions on displayed probability rather than actual execution outcome, leading to inaccurate positions.

How users benefit

Orders fill more predictably and require less manual comparison. The user focuses on deciding the position while the system handles venue selection and execution efficiency.