Order Routing
Order routing is the process by which an order is transmitted from a broker's system to a market venue for execution, selected by routing logic in the broker's order-management system. The routing decision weighs price, speed, liquidity, and other factors across venues.
Example: An order to acquire 1,000 shares is routed to multiple venues by a smart order router to seek price improvement and adequate liquidity; if the first venue cannot fill the order, it can be routed to others.
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