What is SOR Order? Explanation of differences and usages with regular orders

Contact

SOR orders are a method to automatically place orders to markets where multiple markets, such as TSE and PTS, can be concluded in more favorable conditions.

Normally, the order is basically placed on one market specified. On the other hand, the SOR order crosses multiple markets, and the price is cheap if you buy, and the price is high if you sell.

In this article, we will organize the mechanism of SOR order, the difference between regular orders, the benefits andメリットs, and how to use for beginners.

About SOR Order

SOR Order

“How to order automatically by looking for the best conditions”

Home

SOR stands for Smart Order Routing. The securities company’s system compares the TSE, PTS, and other connected markets and turns the order into a market that is more useful.

If you order, you will find a market where you can buy cheaper. If you order, you will find a market that sells higher.

However, the initial setting of the market, order conditions, fees, and SOR for comparisons is different for each securities company. It is important to check the order screen and the description of the securities company before actually using it.

Differences from Normal Orders

The difference between regular orders and SOR orders is the idea of the destination.

Normal Order

Normally, an order is placed in the specified market.

For example, if you specify the east certificate, you can order on the east certificate. It is easy to understand how it works, and it is easy to check where the order was made.

SOR Order

In SOR order, the system of the securities company compares multiple markets.

In addition to TSE, PTS may be compared. Automatically transfer orders to a market where you can get better prices and deals.

SOR Order Flow

For example, if you buy 100 shares.

In this case, 999 yen of PTS is judged to be useful for SOR orders, and the order may appear to PTS.

The image is as follows:

Investors → SOR Systems →市場al Markets such as TSE and PTS

If there are only 50 shares in PTS as an example, it may be processed by only 50 shares in PTS and turn the rest to the TSE. Actual processing depends on the SOR rule of the securities company.

SOR Order Benefits

1. Aim for price improvement

The biggest advantage is to improve sales prices.

For example, if you buy 100 shares,

In this example, there is a difference of 200 yen.

Even if the difference per time is small, the number of transactions and the number of shares increases, it will be effective as a difference in trading costs.

2. More opportunities

There are multiple markets, so there is a possibility that there are more opportunities to make a contract.

Even if the TSE does not accept it at the desired price, it may be set if there is a counter order to PTS.

However, it is not always easy to settle. The results vary depending on the thickness and order timing of the board.

3. Automate market comparison

It takes a long time to compare the board of TSE and PTS by yourself.

If you order SOR, the system of the securities company will automatically compare, so even beginners can use it.

SOR Order Demerits

1. It is difficult to understand the market

In SOR orders, it may be difficult to understand which market has been established intuitively.

Beginners

• Why is this price?
• Which market has been established?
• Why do I have a certain contract?

You need to check it.

Please check the market name in the contract history and transaction report.

2. Pay attention to the liquidity of PTS

PTS is convenient, but depending on the brand, it may be less likely to be made from the Toshin.

If the liquidity is low, the following may occur:

• Thin board
• Wide spread
• ate only part
• Price changes suddenly

In particular, it is not safe because it is SOR order because it is a small stock and a small stock.

3. Different specifications for each securities company

SOR orders vary by brokerage company.

The points you want to check are as follows:

• Supported SOR
• Where to compare PTS
• Handling finger values and行s
• Can SOR be turned off?
• How to confirm the market
• Handling fees and price improvements

The actual movement is not exactly the same even as the same SOR.

Should Beginners Use?

In conclusion, it is practical to use it as an auxiliary function after understanding the mechanism.

SOR orders are useful for automatically comparing the market. It is a merit to aim for price improvement without increasing sales.

On the other hand, check carefully in the following cases:

• Low liquidity
• Brands with high value movement
• When ordering large shares at once
• If you want to check which market you have contracted

For long-term investments, it is more important to select symbols than SOR orders, and to manage distributed investments, investment periods and fees. SOR is not an alternative to investment decisions, it is a function to increase order efficiency.

Common misunderstandings

SOR order is a method to automatically turn the order into a market where you can compare multiple markets, such as TSE and PTS, and can be concluded in more favorable conditions.

The difference between regular orders is whether to place a single market or compare multiple markets.

The advantage is to aim for price improvement and increase of contract opportunities. On the other hand, it is necessary to note that the market is difficult to understand, the liquidity of PTS, and the specification difference of each securities company.

Let’s check the following:

1. Check your broker’s SOR settings
2. See the market name in the history
3. Observe the difference between normal and SOR orders with a small amount

The SOR order is not a must-have to win, but it is easy to understand as a tool for a little more efficient order.