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What is a crypto exchange order matching engine?

Fri, 10/08/2021 - 12:10
What is a crypto exchange order matching engine?
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What is the primary objective of any cryptocurrency exchange? These platforms facilitate the purchase and sale of digital assets in exchange for other cryptocurrencies or fiat money. According to these experts, every cryptocurrency exchange is built on an order matching engine (OME).

What is an order matching engine?

These engines are critical to the operation of a cryptocurrency exchange since they keep all of the user orders. Additionally, a matching engine reconciles bid and ask prices, enabling holders to buy or sell assets at market pricing.

This automated technique is used to estimate the market depth. Orders are divided into categories based on their purpose (ask/bid), duration, and price. When an engine detects a match between the ask and bid instructions, it instantly executes a transaction. Traders/investors may cancel a transaction in specific circumstances.

How does matching engine work?

The algorithms of an engine gather information about all generated orders. When two polar opposite orders (bid-ask) coincide, a transaction is completed. A trader may use these algorithms to generate market, limit, and stop-limit orders.

Engines may use a variety of algorithms, but the FIFO concept is the most often used. This method determines the priority of an order based on its execution time. For instance, if two identical orders exist, the engine performs the older one.

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

Obtaining an order matching engine is possible in a variety of ways

When considering how to start crypto exchange, developing a matching engine is a key priority. 

There are many options available:

  1. Create your own engine.
  2. Purchase an OME that has been pre-assembled from a business that specializes in such goods.
  3. Utilize a tailored matching engine.
  4. Acquire an OME as part of a complete exchange solution package.
  5. Combine the choices provided.

B2Broker to provide a robust order matching mechanism

The B2Broker company's turnkey cryptocurrency exchange is one of the most in-demand services. The procedure entails a slew of critical components and many hazards; applying to experienced experts is the best course of action for newcomers.

In terms of the matching engine used in B2Broker's recommended trades, the business boasts cutting-edge technology capable of processing 30 000 requests every second. In addition, the engine operates in a 24/7 mode with the fewest possible maintenance breaks.

B2Broker solutions give you a head start in creating a crypto exchange, as our high-quality goods outperform the competition.

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