Saxo Bank executes client trade requests on an Order Driven basis. This applies to all of Saxo Bank’s extensive range of instruments, except for FX Options which trade on a Quote Driven Model (green pricing).
An Order Driven Model provides an executable price that is based on Saxo’s own liquidity, in addition to liquidity available on a DMA basis in the broader market. Clients are provided with greater control over the way that their order is traded through user defined Price Tolerance, with the potential for benefiting from price improvement.
An Order Driven Model may result in partial fills in the event that there is not enough liquidity available at the price and/or at the size requested.
Price Tolerance defines the minimum price (when selling) or the maximum price (when buying) that the client is comfortable accepting. Tolerance can be specified either as a fixed price increment or as a percentage of the current market price. The default is set to 0.01% of the current market price for all currency pairs, but is configurable on an individual currency pair level.
Various order types can be can be used to enter or exit a position. See Order Execution.