The Role Of Exchange Matching In Trading

Many people these days prefer trading in cryptocurrency because of its high rate value. It is now quite facilitated with an electronic exchange matching engine which has gained popularity already. This is software that supports the crucial exchange party and enables the users to trade with one another. When it comes to using it for the first time, the trader may find it overwhelming to use but with a professional company, this stress can be eased down. The company that offers such a solution provides a well-integrated platform for exchange facilities and supports the multiple asset classes too.

What is the matching engine?

This is one efficient trading software that relies on the algorithm to analyze the trade data and come up with a suitable bid. It offers the right bidding so the trades can be well executed. Advances in exchange matching engine technology have developed to a great extent and now there are multiple assets in which trading is possible.

These days investors don’t want to stand quietly at the exchange floor and do the trading personally. The order matching engineer offers a trading platform with high frequency and is entirely enabled with an intelligent matching engine.

The working of a matching engine:

  • As a part of the exchange trading solution, the matching engine can blend well with the payment institutions, banks, and liquidity providers with the help of a low latency API.
  • The investors can submit sell and purchase orders using API.
  • If the investor is focusing more on purchasing a certain class of the assets and another investor is selling that specific asset class at the right price and quantity, then a matching engineer will do the job. It would identify the process and match the transaction.
  • The order will be compatible provided the buyer’s maximum price is equivalent to or exceeds the minimum price of the exchange.
  • Usually, there is a popular algorithm that matches depending on the priority of the price time. However, some models offer the size property and also the pro-rata matching algorithm.
  • Talking about the algorithm of the engine, well it gathers the data on the orders that have been created. When two opposite orders match, there will be a deal that is made.
  • It is then possible for the trader to use such an algorithm so that it can market further and even strictly or set a limit on future orders.
  • In the whole process of the exchange matching engine, the FIFO principle is followed commonly. The priority of the order will be determined depending on the algorithm time.

Since such work seems to be a complex process, it is always better to take professional help and gather the data. The process can be lengthy which is why it is advised for the owners to be patient and get in touch with a professional company for the same.


To create and use a successful exchange, along with the matching engine for cryptocurrency, attention should also be given to deposits, compliance, sales, withdrawals, marketing, and even the regulatory environment.

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