What Is an Order Matching Engine for Crypto Exchanges?


August 20, 2021, | AtoZ Markets – What is the key goal of every crypto exchange? These platforms are aimed to help holders buy and sell their digital assets for other cryptocurrencies or fiat money. This said experts name an order matching engine (OME) as the basis for every crypto exchange.

What is order matching engine?

Such engines are the hearts of a crypto exchange, containing all the orders created by users. An engine matches bid orders with ask ones, enabling holders to buy or sell assets in accordance with market prices.

This electronic system is responsible for the market depth. Created orders are grouped by purpose (ask/bid), time, and price. When an engine finds the correspondence between ask and bid orders, a deal is executed automatically. In other cases, traders/investors may cancel a deal.

How does matching engine work?

An engine’s algorithms collect the information about all created orders, and when two opposite orders (bid-ask) correspond to each other, a deal is executed. Such algorithms enable a trader to create the market, limit-order, and stop-limit orders.

Engines may leverage diverse algorithms, while the FIFO principle is the most widespread. This algorithm defines an order’s priority by its time. For instance, when there are two identical orders, an engine executes the one created earlier.

Order matching engines are complicated software that collects and synchronizes data within diverse trading pairs. An OME development is a time-taking process; this said business owners need to apply to reliable companies.

Available options to get order matching engine

When you are interested in how to start crypto exchange, matching engine development is among the top priorities. The following solutions are available:

  1. Develop such an engine on your own.
  2. Purchase a ready-made OME in a company that specializes in such products.
  3. Use a custom matching engine.
  4. Get an OME inside a package of turnkey exchange solutions.
  5. Combine the given options.

B2Broker to offer the powerful system of order matching

A turnkey crypto exchange is among the most in-demand services offered by the B2Broker company. The process includes a string of important aspects and many pitfalls; this is why applying to experienced specialists is the best solution for newer players.

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