Order aggregation: multibook except close explained
Author: Alexey Kutsenko
Order aggregation is a critical process for any broker looking to provide fast, reliable, and profitable service to their clients.
Efficient order aggregation means giving traders the best pricing possible in a given situation. And when time is money, and nobody wants to wait, being able to execute orders with more gain for traders than other brokers can offer becomes a very critical matter.
Tools for Brokers is constantly working on perfecting all aspects of its Trade Processor liquidity bridge, including the order aggregation system. At the moment, the solution offers six aggregation methods:
- Single book
- Multibook except close
- Net except close
- Multibook proportional
- Multibook proportional except close
Why does the Trade Processor have so many options?
The answer is simple: best pricing is subjective. It means different things in different situations, plus it can be reached using various methods. In order to cater to as many scenarios and brokers as possible, Trade Processor includes six options that every broker can choose from.
Multibook except close aggregation
This aggregation method addresses:
- Manual consolidations at the end of the day.
- Open order risks associated with added swaps and out-of-control spreads.
How does the multibook except close work? The bridge tracks all order-related details such as who opened the order and where it was opened. It then executes the order with the same liquidity provider (LP) where the order was initially placed. It means that everything is automatically consolidated, and brokers can save themselves a couple of hours of daily repetitive work. Besides that, the Trade Processor tracks all open orders and ensures the swaps and spreads do not consume the multibook profit.
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