Orderbook matching is the process by which buy and sell orders for a digital asset are paired and executed on an exchange. This system maintains a record of all open buy orders (bids) and sell orders (asks) at various price levels. When a new order enters the market, the matching engine attempts to find a corresponding order at an acceptable price, facilitating a trade. Efficient orderbook matching is crucial for market liquidity and fair price discovery.
Context
The efficiency of orderbook matching is a key discussion point for both centralized and decentralized exchanges, directly impacting trading experience and market depth. A critical future development involves advancements in matching engine algorithms and distributed ledger technology to support higher transaction volumes and lower latency. News often reports on improvements in exchange infrastructure aimed at enhancing this core trading functionality.
We use cookies to personalize content and marketing, and to analyze our traffic. This helps us maintain the quality of our free resources. manage your preferences below.
Detailed Cookie Preferences
This helps support our free resources through personalized marketing efforts and promotions.
Analytics cookies help us understand how visitors interact with our website, improving user experience and website performance.
Personalization cookies enable us to customize the content and features of our site based on your interactions, offering a more tailored experience.
