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Order routing Meaning

The automated process of selecting the best path for a trade. A Smart Order Router (SOR) scans different exchanges or liquidity pools to find the best price.

If you want to buy BTC, the router might see that Coinbase is selling for $50,000 and Kraken for $49,950. It routes the order to Kraken.

In a fragmented market like crypto, effective routing saves significant money.

It is the engine behind "Aggregators" and institutional trading desks, ensuring they capture the best liquidity available globally.

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