An Inside Look Of How Trade Matching Engines Work

The trade matching engine is an online exchange’s fundamental software and hardware component. To execute trades, it connects bids and offers. Corresponding engines distribute rival bids and provide at the same price using one or more algorithms.

The most popular algorithm is time price priority, which means that bids, as well as offers, but first in the rendering engine, have precedence over similar proposals and offers entered later in the process.

Various flow types, such as limit and market orders, are supported by matching engines. Matching engines may employ custom APIs or standard APIs like FIX APIs.

Fill all the trading needs without any hassles

Their trading and matching engine technology provides dependable, extensive, multi-asset functionality to marketplaces and execution sites of all sizes, allowing them to keep up with ever-changing market demands. Marketplaces may manage the whole spectrum of trading functions – from pricing formulation to order mirroring – in a complete solution built on the Financial Framework, with strong features supporting trading in any commodity, anytime, everywhere.


Comprehensive coverage

A trade matching engine including all asset classes and market models, from equities to exotic derivatives to digital assets. It provides specific capabilities for derivatives and hybrid models, as well as flexible attribute matching.

High-performance synchronization

Extensive order book functionality supports a wide range of order types in a proven, resilient environment with ultra-low door-to-door latency and excellent availability.

Adaptable to various sizes of marketplaces

Supports a wide range of marketplaces, from large to small, fundamental to complicated, and scales effortlessly when their matching engine grows in volume, asset classes, or marketplaces.

Global interconnectedness

Improves member onboarding and system integration by leveraging industry-standard communication protocols as well as APIs for FIX, ITCH, and OUCH, as well as an easy-to-use trading workstation.

The strong regulatory framework

Based on knowledge and experience of running Nasdaq markets and marketplaces in 50+ countries, adopts best-in-class international standards within a solid regulatory framework.

Cloud accessibility

Cloud-optimized matching supports B2B, B2C, and C2C trading models in a 24x7x365 environment with dynamic order size and trading volume scalability.

A matching engine is the heart of digital exchange, bringing together bids and offers to complete trades. They function by employing one or more algorithms that keep track of all open orders in a market and generate new transactions if the two orders can be completed by each other.

B2BX is a leading bitcoin exchange. The software that supports it is the most crucial aspect of any exchange because it allows users to trade. The electronic trade matching engine is nearly exclusively responsible for facilitating trading nowadays.


The algorithm is relatively straightforward. Any sell order that lists sales at a price higher or equal to their order is matched with a buy order. They return the trades matched when this condition is no longer valid, or the order is fully satisfied. That’s as simple as it gets! Overall, this engine can reduce a lot of workloads and depend on human intervention when they deploy it correctly.