What is an order matching engine for crypto exchanges?

FinanceFeeds Editorial Team

What is the primary objective of every cryptocurrency exchange? These platforms are designed to make it easier for anyone to purchase and sell digital assets for other cryptocurrencies or fiat money. According to experts, every crypto exchange’s foundation is an order matching engine (OME).

What is the primary objective of every cryptocurrency exchange? These platforms are designed to make it easier for anyone to purchase and sell digital assets for other cryptocurrencies or fiat money. According to experts, every crypto exchange’s foundation is an order matching engine (OME).

What is an order matching engine?

These engines are the beating hearts of a cryptocurrency exchange, storing all of the orders placed by users. Bid and ask orders are matched by an engine, allowing holders to purchase and sell assets at market prices. 

The market depth is determined by this electronic method. Orders are categorized by their purpose (ask/bid), timing, and price. A deal is automatically conducted when an engine discovers the correlation between ask and bid orders. Traders/investors may also cancel a transaction.

What is the mechanism behind the matching engine? 

The algorithms of an engine collect data on all created orders, and when two opposite orders (bid-ask) match, a deal is made. A trader can use these algorithms to make market, limit, and stop-limit orders. 

Engines can use a variety of algorithms, but the FIFO principle is the most common. The priority of an order is determined by its time in this algorithm. When two orders are identical, for example, an engine will execute the one that was created first.

Order matching engines are complex pieces of software that gather and synchronize data across multiple trading pairs. Because OME development is a lengthy process, company owners must apply to reputable firms.

How to get an order matching mechanism 

Matching engine development is one of the top objectives when it comes to learning how to start crypto exchange. There are several options available: 

  1. You create such an engine on your own. 
  2. Purchase an OME that has already been assembled from a company that specializes in such software. 
  3. Make use of a custom matching engine. 
  4. Get an OME as part of a turnkey exchange solution package. 
  5. Combine the choices provided.

B2Broker provides an advanced order matching system 

B2Broker’s turnkey crypto exchange is one of the company’s most popular services. Since the process of developing an order picking mechanism from scratch has many pitfalls, consulting with experienced professionals is the best solution for novice players.

B2Broker’s matching engine, which is used in the exchanges it recommends, is a high-end technology that processes 30 000 requests per second. With the shortest maintenance pauses, the engine is available 24 hours a day, seven days a week. 

B2Broker solutions give you a leg up on your competition in the crypto trading field, as high-quality products lead the market.

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