Are you curious to learn more about matching engines? This article provides a complete overview of this technology, discussing its key features in detail.
What is a Matching Engine?
A matching engine is a computer system that matches buyers and sellers in an exchange. It is the core of the trading system, which enables the exchange to process orders, match them against available liquidity, and execute trades. The trade engine is designed to be fast, efficient, and reliable, allowing buyers and sellers to trade quickly and with confidence.
Utilizing algorithmic programming, the system stores and records all open orders in a market. If matched orders are found, it will then automatically execute the transaction.
Such engines can support different types of orders, such as market orders or limit orders, they may have unique APIs, and they also can offer a wide range of other features.
What Types of Matching Engines Are There?
On the exchange market, several exchange matching engines are generally used, with centralized and decentralized types being the most common.
- Decentralized type
This type of matching engine is created to match orders from several users in real time, but it does not depend on a central server. This type of matching engine uses a peer-to-peer network to match orders, which means there is no central point of failure, and the system is more resilient to attacks.
- Centralized type
The centralized matching engine is the most commonly used type on the market. Major exchanges use centralized matching engines. It is designed to match orders from multiple users in real time.
Each matching engine type has its own disadvantages and advantages. Typically, faster and more efficient matching engines are centralized but more vulnerable to attacks. Unlike centralized engines, decentralized engines are more resilient to attack but slower and less efficient.
Essential Characteristics of a Matching Engine.
In order to determine which order-matching engine is best for their exchanges, business owners must compare the available options. Here are some key characteristics of order-matching engines:
- How many requests are fulfilled in a second?
Trusted providers offer OMEs that process more than 10 000 requests per second.
- What is the minimum trade processing?
The best engines execute orders in 0.05 milliseconds or less, allowing traders to use various trading strategies.
- Does the provider offer 24/7 support?
Company owners may encounter several difficulties, so quality customer service is vital.
A business owner creating a crypto exchange may develop an OME independently. At the same time, solutions recommended by trusted brands help newer candidates remain competitive.
What We Recommend
The number of crypto-holders is growing rapidly, and the crypto market is fiercely competitive. The question is, what are the primary goals of trading platforms?
Digital currency exchanges simplify buying and selling digital assets for traders and investors. An order-matching engine is among the core ones. If a business owner decides to start a crypto exchange, every detail counts.
Many business owners aren’t pleased with their matching engine and are looking for the best one. The solution that matches this definition exactly is B2Trader. B2Trader as the engine processes 10 000 orders per second, starting with 0.05 milliseconds for a request. The platform compares bids, asking prices, and offers to execute trades. It allows holders to buy or sell crypto assets at the market price. It has features like mapping symbols, synthetic instruments, aggregation, risk parameters, and hedging. Also, Marksman Liquidity Hub is here for simple and fast access to major crypto exchanges and liquidity pools.
Furthermore, the solution is available in three different packages. You can choose the features you genuinely need.
B2Broker, a company that released the OME, provides business owners with 24/7/365 technical support to solve problems instantly. Clients can also get high-end solutions, including the possibility of integrating B2BinPay, a crypto processing service.
In conclusion, matching engines are essential to running a successful crypto exchange. Business owners need to carefully consider the different types of order-matching engines available and research their features and characteristics, such as speed, reliability and customer service, before making a decision. Finding an engine that is fast, reliable and provides excellent customer support will help ensure the success of the exchange. Ultimately, the right order-matching engine can result in a smoother and more efficient trading experience for users.