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How a broker decides where to send your order to be filled.
Why It Matters
When you submit an order, it doesn't go straight to 'the market' - your broker chooses a destination: a public exchange, an off-exchange wholesaler, or a dark pool. That choice, order routing, affects how fast you fill and at what price. Most retail apps route automatically and you never see it, but the decision is governed by best-execution rules and the NBBO. Some advanced platforms let you direct your own orders to a specific venue.
Key Points
- The choice of where your order gets sent
- Destinations: exchange, wholesaler, or dark pool
- Governed by best-execution rules and the NBBO
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How Your Order Gets Filled
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Related Terms
Common Questions
How a broker decides where to send your order to be filled. When you submit an order, it doesn't go straight to 'the market' - your broker chooses a destination: a public exchange, an off-exchange wholesaler, or a dark pool. That choice, order routing, affects how fast you fill and at what price.
When you submit an order, it doesn't go straight to 'the market' - your broker chooses a destination: a public exchange, an off-exchange wholesaler, or a dark pool. That choice, order routing, affects how fast you fill and at what price. Most retail apps route automatically and you never see it, but the decision is governed by best-execution rules and the NBBO. Some advanced platforms let you direct your own orders to a specific venue.
The choice of where your order gets sent
Destinations: exchange, wholesaler, or dark pool
Governed by best-execution rules and the NBBO