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Matching Engine

Matching Engine

Last Updated: January 11, 2026

A matching engine is the core software of an exchange that pairs buy and sell orders efficiently and accurately.

A matching engine is the backbone of any cryptocurrency or fiat exchange. It efficiently pairs buy and sell orders based on price and time priority. When a user places an order to buy or sell, the matching engine scans its order book. It finds the best possible match according to predefined rules. This process ensures trades are executed seamlessly and at the best available prices. A robust matching engine is crucial for providing liquidity, minimizing latency, and ensuring fair market operations. It handles thousands of transactions per second, maintaining the integrity and efficiency of the trading platform.