Contact
SOR (Smart Order Routing) is a system that automatically turns stock orders into a market that can be settled in more favorable conditions compared to multiple markets.
In addition to the Tokyo Stock Exchange, PTS (Private Trading System) may be compared. If you are a buyer, you may be able to set the price at a higher price.
However, SOR is not a mechanism to obtain. The target market, order conditions, fees, and rules differ depending on the brokerage company, so beginners are理解 to understand as an auxiliary function.
What is SOR
SOR stands for Smart Order Routing.
to say
“How to find and order the most important market automatically”
Home
Japanese stocks are sold in PTS as well as the Tokyo Stock Exchange.
| Market | Features |
|---|---|
| Tag | Japan Stock Central Exchange |
| PTS | Private trading systems such as securities companies |
In normal order, the destination may be the center of the Toshin. On the other hand, the SOR compares the system of the securities company to the market, which is determined to be more useful.
For example, if you order a purchase,
| Market | 売り気配 |
|---|---|
| Tag | JPN |
| PTS | ¥1,000(税別) |
PTS can be cheaper.
SOR
- Buy cheaper
- High sales
- Expand the location that can be determined
It is a mechanism to support.
Why is SOR important?
However, the market is not only one.
Even with the same symbol, there may be the following differences in the TSE and PTS:
- Price difference
- Board thickness
- Easy to set
- Speed through order
- Time zones to trade
SOR will go to see this difference automatically.
Example
Consider if you want to buy 100 shares.
| Market | Sales volume | Price |
|---|---|---|
| PTS | 50 shares | ¥1,000(税別) |
| Tag | 100 shares | JPN |
In this case, depending on the SOR rule of the securities company, you may buy 50 shares for 1,000 yen in PTS first, and you may be treated to buy the rest with the TSE.
Even if the number of transactions and the number of shares increases, the cost will be different.
SOR Benefits
1. Easy to set at fair prices
The biggest advantage is the possibility of price improvement.
The market is cheaper than the purchase order.
In particular, if there is a price difference between TSE and PTS, SOR may help.
2. Automatic market comparison
It is very difficult for beginners to compare the board of the TSE and PTS every time.
SOR automatically compares the system of the securities company.
Therefore, investors may be able to use multiple markets by simplyOR SOR on the order screen.
3. More opportunities
Even if the order is difficult to be established in the TSE, PTS may be established.
In particular, in symbols where the board is dispersed, there is a possibility that the number of orders will increase.
SOR
1. Easy to see
SOR is convenient, but there is a little difficult to understand for beginners.
After
- Which market has been established?
- Why was that price?
- Why did you decide only a part?
may be difficult to understand.
It is easy to understand by adding a habit of confirming the contract market in the history and transaction report.
2. PTS liquidity is differentiated by brand name
PTS is convenient, but depending on the brand, it may be less likely to be made from the Toshin.
If the liquidity is thin,
- Thin board
- Wide spread
- Only partially set
- Price changes suddenly
といったことがあります。
Because there is SOR, it is not useful for all symbols.
3. Different rules for each securities company
SOR’s target market and order conditions vary depending on the securities company.
For example:
- Which PTS Compare
- Is it possible to respond to a delivery order?
- How to deal with a finger order
- Handling fees and price improvements
- Can I turn on/off SOR?
is different for each company.
Before using, check the description page of your securities company.
Tips for beginners
Not always get
SOR is a mechanism to find the best conditions.
However,
- Buy at the lowest price
- Sell at the highest price
- ate quickly
- Increase profit
No warranty.
The results vary depending on market conditions, order quantities, board thickness and order timing.
Long-term investment as an auxiliary function
In long-term investment, the following is more important than SOR:
- Brand Name
- Investment
- Decentralized investment
- Investment period
- Fee Management
- RiskManagement
SOR is not a function that makes investment decisions better.
This is a auxiliary function to improve the trading efficiency when ordering.
Common misunderstandings
| misunderstanding | In fact |
|---|---|
| SOR | Order function for price improvement |
| Fast trading | Individual investors may be available |
| Don’t use the Tokyu | Comparing with the TSE |
| PTS | Depending on the brand name and time zone |
| Always use without setting | By setting up a securities company or order screen |
SOR is a system that automatically turns stock orders into a market that can be compared in multiple markets and can be concluded in more favorable conditions.
You can compare the TSE and PTS, so you can expect to improve the price and increase the chance of 。.
On the other hand, it is necessary to check the liquidity of PTS and the rules of each securities company.
Let’s check the following:
- Is your securities company compatible with SOR?
- Can I turn on/off the SOR setting on the order screen?
- Which market has been ordered in the history
Even if you look at this three, the SOR mechanism is quite easy to understand.