Order routing systems routes and delivers orders to various destinations depending on the business logic. Customers use them to send orders to their brokers, who then send these orders to dealers, clearing houses, and exchanges.
There are different types of orders. The two most common ones are markets orders and limit order.
A market order is an instruction to trade at the best price currently available in the market. These orders get filled immediately at spot prices. On the other hand, a limit order is an instruction to trade at the best price available, but only if it is not lower than the limit price set by the trader. This can also be higher depending on the direction of the order: either to sell ...
