Order Matching Engine

An order matching engine is an electronic system that collects all orders from both the buyer and the seller side. Then match the orders that are available in the system at that moment. The system will consider the order based on the price and time of execution. enabling automated trading of financial instruments.

The order matching engine has a mechanism that starts with a collection of orders created by all users. And check which buy and sell orders have the same price, the system will automatically match.

For the sequencing principle By order matching engine , the system will consider the time that the order was placed. followed by the bid-ask price (Time then Price ). So, if the system has two orders at the same price ,The system will choose to match with the person who submitted the order first.