Smart Order Router

A Smart Order Router (SOR) is an advanced technological tool that automatically directs an order to the exchange or liquidity pool offering the best price. In a fragmented market with many exchanges, an SOR is essential for ensuring that a trader achieves the best execution possible.

It scans multiple venues in real-time, accounts for transaction fees and liquidity, and splits the order if necessary to maximize the fill rate. By automating the search for liquidity, an SOR significantly reduces the manual effort and cost associated with trading across platforms.

It is a critical component of modern institutional trading infrastructure in the cryptocurrency domain. It helps overcome the inefficiencies caused by liquidity fragmentation.