Saxo Bank executes client trade requests on an Order Driven basis. This applies to all of Saxo Banks extensive range of instruments, except FX Options which are out of scope and will continue to 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, and 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 limit price and/or at the size requested.
Price Tolerance defines the minimum price (when selling) or the maximum price (when buying) that a client is comfortable accepting. This can be set in pip or percentage terms. The default is set to 0.01% of the Spot 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 into a position. See ‘Order Execution’